CPAs & firm owners · US & Canada
For decades, firms changed hands at roughly one times revenue through internal succession. Many owners are still pricing themselves on that old rule. Know your number in 60 seconds — then sell confidentially, paid only when you close.
In short
Smaller CPA practices still commonly sell near 1x annual revenue (about 1.5–2.5x seller’s discretionary earnings (SDE)). Firms with roughly $1M+ of EBITDA, advisory mix and staff depth trade around 5.5–8.5x EBITDA, and private-equity platform deals 10–15x. These are market ranges, not a quote or a guarantee. The presence of private-equity-backed platforms has widened the gap between those two outcomes considerably.
The “1× revenue” rule vs how PE prices recurring fees
Private equity’s entry into the profession has broken the old convention for firms of real scale — and widened the gap between the two outcomes considerably.
The old rule
| Smaller CPA practicesstill commonly sell near | ~1× revenue |
| Expressed as owner earningsseller’s discretionary earnings | 1.5–2.5× SDE |
Still the right answer for many firms — and worth valuing properly rather than assuming it is the only option.
Since private equity arrived
| Firms with roughly $1M+ EBITDAadvisory mix and staff depth | 5.5–8.5× EBITDA |
| Private-equity platform dealsplatform-scale firms | 10–15× EBITDA |
PE-backed platforms typically pay more than traditional succession for firms with advisory revenue, staff depth, and partners willing to remain through a transition.
Which world you are in depends less on your revenue than on whether the firm can operate without its founding partner.
Market ranges, not a quote or a guarantee.
Partner succession & timing
Buyers price the risk that clients leave when you do — and structure long transitions to manage it.
In a profession with a well-documented talent shortage, a stable team is a substantial part of what is being purchased.
This is what moves a firm from the old rule toward PE-era pricing.
Firms are valued on a normalized year, and buyers strongly prefer to close outside of busy season. Beginning conversations in the spring for a following-year close is a far calmer path.
What moves the number
| No. | Line item buyers examine |
|---|---|
| 01 | Recurring versus project revenueMonthly and annual engagements are worth far more than one-off project work, and advisory retainers are the most valuable revenue in the firm. |
| 02 | Client concentrationA firm where the top five clients are a large share of fees is discounted sharply, regardless of quality. |
| 03 | Partner and owner dependenceIf the relationships live with you personally, buyers price the risk that clients leave when you do — and structure long transitions to manage it. |
| 04 | Staff retention and capacityIn a profession with a well-documented talent shortage, a stable team is a substantial part of what is being purchased. |
The buyers
The new and most aggressive buyers, focused on firms with advisory revenue, staff depth, and a partner group willing to stay.
Traditional strategic acquirers, often the best home for a compliance-heavy practice.
Still the right answer for many firms, and worth valuing properly rather than assuming it is the only option.
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Straight answers
More in our seller guides — or ask Vera in your free account.
Smaller CPA practices still commonly sell near 1x annual revenue (about 1.5–2.5x seller’s discretionary earnings (SDE)). Firms with roughly $1M+ of EBITDA, advisory mix and staff depth trade around 5.5–8.5x EBITDA, and private-equity platform deals 10–15x. These are market ranges, not a quote or a guarantee. The presence of private-equity-backed platforms has widened the gap between those two outcomes considerably.
Yes. PE-backed platforms have been acquiring accounting firms actively, and they typically pay more than traditional succession for firms with advisory revenue, staff depth, and partners willing to remain through a transition. Whether that is the right buyer for you is a separate question worth answering deliberately.
Through a confidential process. There is no listing. Buyers sign confidentiality agreements before they learn which firm is for sale, conversations happen on your schedule, and you decide when your partners, staff, and clients are told.
The engine, pointed at accounting
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