Published on November 1, 2013, this article provides guidance on valuing CPA firms and ownership interests in CPA firms. The article was published by the Journal of Accountancy as part of their series on succession planning in the public accounting industry.
The authors identify four (4) factors that ultimately determine the multiple of billings used in figuring sales price, as follow:
Cash Upfront, if any
Retention Period(Length)
Profitability(for the buyer based on deal structure), &
Published on November 1, 2013, this article provides guidance on valuing CPA firms and ownership interests in CPA firms. The article was published by the Journal of Accountancy as part of their series on succession planning in the public accounting industry.
The authors identify four (4) factors that ultimately determine the multiple of billings used in figuring sales price, as follow: