FREE White Paper: “One Times Fees Is a Steal”

There’s a “rule of thumb” that a CPA firm’s goodwill is worth one times fees.

But this “rule of thumb” is a myth!

Marc Rosenberg, CPA, and author of CPA Firm Mergers: Your Complete Guide, demonstrates that buying a small firm for one times fees is a steal (for the buyer). In fact, it’s still an outstanding investment at a premium price, say, as high as 1.3 times fees.

Buyers, operating under the ill-conceived “rule-of-thumb” often  balk when sellers ask for something more. That’s a pity – for both buyer and seller.

This succinct spreadsheet analysis could help to bring both sides closer together.

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