Tag-Archive for CPA Firm Valuation

CPA or Accounting Firm Valuation

When trying to find the worth of your business, remember there is no magic formula to “finding your accounting firm valuation in 5 minutes or less”. However, steps can be taken to help approximate the value of your business. Valuation of a business is derived from how much money your business will make in the…

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Why Large Accountancy Firms Carry Higher Valuation Multiples

I often get asked questions on valuation methodology for accountancy firms or CPA practices. There are many variables that get considered in a valuation, attrition averages, operating margins, cash flow margins, work quality, book demographics such as AGI, work complexity, and average age but the size of the firm (the gross recurring revenue) needs to…

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Accounting and CPA Practice Valuations

Most CPA’s and Accountants have a general understanding that accounting practices are valued at one-times gross revenue. While the “average” selling price for a practice is near one-times gross revenue this is only the average. Practices typically sell between .75 and 1.5 of gross revenue.  In order to properly price a practice, a number of…

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