Sell Your Accounting/CPA Firm

Maximize the Value of Your CPA Firm with Expert Guidance

At Waddell Mergers & Acquisitions, we specialize in facilitating the sale of accounting practices, ensuring a smooth transition that honors your legacy and maximizes your firm's value. Whether you're planning for retirement, pursuing new opportunities, or seeking to capitalize on your hard work, our experienced team is here to guide you through every step of the process.

Accountant introducing new firm partner to a long-term client in a professional office setting

Why Choose Waddell M&A for Your CPA Firm Sale?

Industry Expertise: Our team has sold more professional service firms than anyone in the country, understanding the unique dynamics and valuation drivers of the industry.

Customized Strategies: We develop tailored exit strategies that align with your specific goals, whether it's achieving the highest valuation, ensuring cultural fit with the buyer, or maintaining your agency's legacy.

Extensive Buyer Network: Our vast network includes strategic buyers, private equity firms, and international investors actively seeking opportunities in the accounting/cpa space.

Confidential Process: We prioritize discretion throughout the sale process, protecting your agency's reputation and client relationships.

Proven Track Record: Our successful transactions speak to our ability to deliver results that meet and exceed our clients' expectations.

Meet Our Expert

DJ Waddell is a licensed Business Broker and Certified Mergers & Acquisitions Professional, he serves as Waddell M&A's CPA Firm expert. DJ has successfully sold CPA firms across the country, from small "mom and pop" shops to national firms. If you're thinking about selling your CPA firm, you'll be in good hands with DJ!

Key Factors that Influence Accounting/CPA Agency Value

Earnings History: Consistent revenue and profit growth over the past 3-5 years enhance valuation.

Client Retention rates: Long term clients showcase the value the firm delivers and speaks to the firm's client retention ability.

Management Team: Experienced and stable leadership adds to the agency's attractiveness.

Diverse Revenue: A diversified revenue stream reduces risk and increases value to buyers.

Financial analysts examining valuation charts and graphs.

Valuation Multiples

Valuation multiples are essential tools in small business transactions, providing a standardized method to estimate a company's value based on its financial performance. Unlike public companies that often use metrics like the Price-to-Earnings (P/E) ratio, small businesses typically rely on multiples such as Seller’s Discretionary Earnings (SDE), and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Seller’s Discretionary Earnings (SDE) Multiples are commonly used for small businesses where the owner's involvement is significant. This metric accounts for the owner's salary and benefits, providing a clearer picture of the business's cash flow. SDE multiples for Accounting/CPA Firms generally range from 1.5x to 2.5x, depending on factors like industry, location, and operational efficiency.

EBITDA Multiples are often applied to larger small businesses with more complex financial structures. These multiples typically range from 2.5x to 6.0x for Accounting/CPA Firms and are favored because they normalize earnings by excluding non-operational expenses, providing a more consistent basis for comparison across businesses. Typically agencies with $4m+ of annual revenues would fall into this category

It's important to note that these multiples serve as starting points. Adjustments are often made to account for unique aspects of the business, such as revenue breakdown, growth trends, and market conditions. We can help ensure that these factors are appropriately considered, leading to a more accurate valuation.