The financial dictionary defines value as “the worth of all rights arising from ownership of property.”

In the case of an accounting firm or a tax practice, most likely the largest asset that will be transferred in a sale will be the intangible portion of the business, or what we commonly refer to as goodwill. But sometimes valuing an intangible becomes an even bigger task.

How do a seller and a buyer ever agree on the value of a firm?

As a seller considers placing his or her business on the market, determining the most probable selling price (asking price) for the firm is very important. Too often the owner assigns an unrealistic or arbitrary value that leads to a lack of response from buyers and the loss of valuable time in the process. This can cause frustration to both the seller and interested buyers. At Accounting Biz Brokers, we know the market and can assist you in determining the most probable selling price for your business.