Industries/Professional Services

Accounting & CPA Business Valuation

Accounting and CPA firms offer stable recurring revenue from tax preparation, audit, and advisory services. Client retention during ownership transitions is the key risk.

1x - 2x
SDE Multiple
3x - 6x
EBITDA Multiple
$200K - $3M
Typical Deal Size
1.5x
Mid-Market SDE

Market Overview

The US accounting services market generates over $140 billion annually. Firm consolidation is accelerating as baby boomer CPAs retire.

What PE Buyers Look For

  • Recurring client relationships
  • High retention rates
  • Advisory service expansion
  • Technology modernization potential
  • Cross-sell opportunities

Valuation Factors

Value Drivers

  • +Recurring client base
  • +Diversified service mix
  • +Staff depth and credentials
  • +Low client concentration

Value Detractors

  • -Owner-performed work
  • -Seasonal revenue
  • -High client concentration
  • -No recurring engagements

Key Metrics Buyers Evaluate

When evaluating a Accounting & CPA business, buyers focus on specific metrics that indicate health, stability, and growth potential.

  • 1
    Annual billing per client
  • 2
    Client retention rate
  • 3
    Service mix (tax vs. audit vs. advisory)
  • 4
    Staff utilization rates
  • 5
    Top client concentration

Typical Deal Structure

Accounting & CPA deals typically follow this structure:

  • 60-75% cash at close
  • 20-30% earnout tied to client retention
  • Partner transition periods: 1-3 years

Free Business Valuation Calculator

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Accounting & CPA Markets by State

Explore Accounting & CPA acquisition opportunities and market data across major states.

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