Firm Value – Perception vs. Reality

How many times have you been convinced you knew the truth about a topic, only to discover you were wrong?

Over the past 11 years, I have had numerous CPAs tell me they did not believe their firms had any value or that anyone would actually be willing to purchase their business. I have had CPAs tell me the only terms a firm could be sold under was 20% per year over 5 years, based totally on the collections of the business.

After selling over 150 CPA firms and tax practices, I can attest to the true facts of how these practices have been and can be sold. A high quality firm with stable revenues, a good reputation, and in a good location can bring a great price, and in many cases the owner can receive all cash at closing!

A few other misunderstood ideas about the sale of a CPA firm or tax practice we have found to be true include:

  • The transition of the clients, when handled properly, is usually very successful
  • Employees usually handle the change in ownership without much issue
  • SBA lenders are eager to loan most of the purchase price to a qualified buyer
  • Contact us to discuss this and any other questions you may have about your firm and a possible sale.

Share this post with your friends

Share on facebook
Share on google
Share on twitter
Share on linkedin

I'm Ready to List My Firm

The process is confidential. Get started now.