Pricing issues for small CPA firm sales

Joel Sinkin and Terrence Putney are writing a three part series of articles on sales of CPA practices in The Journal of Accountancy.  Their first article begins as follows:

For CPAs looking to sell their accounting practice, it can be a big plus to be in a small firm. That’s because small firms generally can command higher multiples than big firms, and external sales usually produce higher prices for accounting practices than internal ownership transfers.

Those are two of the trends that will be explored in a three-part series on valuation issues in accounting firms. This article focuses on small CPA firms. The next two articles will address valuation issues for large CPA firms and internal transfers of ownership.

Read more at Pricing issues for small firm sales.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.