Accounting Firm Valuation
Accounting Firm Business Valuation Calculator & Exit Planning Built for CPAs
We built one platform that tracks your accounting firm business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Accounting Firm Owners Have No Idea What Their Business is Actually Worth
Current Accounting Firm Valuation Multiples (2026)
Accounting Firm values are strong due to increased buyer demand from regional CPA firms, national firms, PE platforms. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Accounting Firm Business Value
Revenue and earnings are the two most influential factors in your accounting firm business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Client Retention
92%+ Retention
Over 92% demonstrates quality. Below 88% indicates pricing, service, or relationship problems. Buyers calculate retention carefully because acquiring new accounting clients costs 5-7x more than keeping existing ones—high churn kills deal value fast.
Low retention = underlying issues
Service Mix
Tax + Advisory
Tax, bookkeeping, AND advisory command higher multiples. Compliance-only firms face margin pressure from automation and offshore competition. Buyers pay premiums for advisory services like CFO consulting and financial planning because they have higher margins and stickier relationships.
Compliance-only = commoditization
Staff Leverage
3:1 Staff Ratio
3:1 or better shows scalability. Doing all work = job. Buyers want firms where the owner focuses on relationships and growth while staff handles production. If you're still doing tax returns yourself, buyers discount heavily for that dependency.
No leverage = no scale
Client Concentration
None Over 5%
Any over 10% creates risk. None over 5% is worth more. Buyers stress-test what happens if your biggest client leaves on day one. Diversified revenue across many clients means predictable cash flow and reduced transition risk.
Concentrated = concentrated risk
Technology Stack
Cloud-Based
Cloud accounting shows forward-thinking, easy to integrate. Firms still on desktop software signal operational drag. Buyers acquire cloud-based firms faster because integration is seamless—no painful data migrations or retraining staff.
Desktop = dated operations
Niche Expertise
Defined Specialty
Industry specialization commands premium multiples. Firms known for restaurants, medical practices, or construction are harder to replicate and easier to market. Generalist firms compete on price; specialists compete on expertise.
Generalist = compete on price
How to Value an Accounting Firm
The U.S. accounting services industry includes over 140,000 firms generating more than $160 billion in annual revenue. Accounting firms — from solo practitioners to mid-size CPA firms — have a well-established valuation framework driven by the recurring nature of tax and audit work.
Seller's Discretionary Earnings (SDE) is used for smaller firms, while EBITDA multiples apply to larger practices. Accounting firms typically sell for 1.5x to 3.0x SDE, or 1.0x to 1.5x annual revenue. The key factor is the percentage of revenue that is recurring — annual tax preparation, monthly bookkeeping, and ongoing advisory clients create predictable revenue streams that buyers will pay a premium for.
A widely used rule of thumb in accounting is that firms sell for 1.0x to 1.5x gross revenue, with the variation depending on client retention rates, billing rates, and staff stability. Firms with high client concentrations — where one or two clients represent more than 15% of revenue — are typically discounted.
The unique valuation driver in accounting is client transferability and relationship stickiness. Accounting relationships are deeply personal — clients trust their CPA with their most sensitive financial information. The typical buyer concern is client attrition after the transition: industry data suggests 10-20% of clients leave within the first year. Firms with multiple client-facing CPAs, documented processes, and service agreements retain clients at significantly higher rates, directly increasing the sale price.
The accounting industry is experiencing significant consolidation and succession pressure as Baby Boomer CPAs retire. This supply-demand imbalance has supported firm valuations. Additionally, firms that have embraced advisory services, cloud accounting, and proactive tax planning command premiums over traditional compliance-only practices. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do accounting firm businesses sell for?
Most accounting firm businesses sell for 2.0x – 3.0x SDE or 0.8x – 1.2x annual revenue. However, the range is wide. Companies with strong client retention can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does client retention affect my company's value?
Client Retention is one of the biggest value drivers for accounting firm businesses. Regional cpa firms, national firms, pe platforms specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my accounting firm business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your client retention, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys accounting firm businesses?
Common buyers include regional CPA firms, national firms, PE platforms, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for accounting firm businesses?
Most accounting firm businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.8x – 1.2x) are sometimes used as quick reference.
What's the fastest way to increase my accounting firm business value?
The fastest improvements typically come from: 1) Improving your client retention to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.