Valuing an Accounting Firm for Sale

Plus: A powerful equation.

By Joel Sinkin
Transition Advisors

When I teach a CPE class on how to value an accounting firm, the first question people ask is what is the multiple? As you likely know, an accounting firm is traditionally sold on a multiple of revenues.

The multiple is just one part of the equation and not a place to end – let alone start – the valuation process. The overall terms must include factors such as how much money if any up front, how profitable is the acquisition, how long is the retention period that impacts the seller’s balance due based on client retention and how long is the payout period?

Already a PRO Member? Click Here to Login & Continue Reading →

B.

Get the Key to Unlock Premium Content Reserved Exclusively for PRO Members.

Go PRO Today: Choose one of these great offers

EASY!

Monthly Plan, $24.97
Save $5/month (17%)!

CLICK HERE
FOR
INSTANT ACCESS

7-day, no-risk free trial
then billed to your credit card monthly.
(Cancel any time)
Regular monthly rate: $29.97

BEST VALUE!

Yearly Plan, $249.95
Save $110/year (30%)!

CLICK HERE
FOR
INSTANT ACCESS

7-day, no-risk free trial
then billed to your credit card annually.
Regular annual rate: $359.95

24-HOUR DAY-PASS

One-Time, $12.99
Best for occasional use.

CLICK HERE
FOR
INSTANT ACCESS

Get instant access, expires in 24 hours.
One-time, non-recurring, charge of $12.99

Joel Sinkin



About the Author

Joel Sinkin is a partner in Transition Advisors, LLC, which exclusively consults on the merger and acquisition of CPA firms nationally. They travel cross country to teach CPE for state and national accounting associations, have consulted on 750-plus accounting firm closings and succession plans, and published books and articles nationally.

Click here for more by Joel Sinkin