Frequently Asked Questions
1. How do I sell my CPA firm and what is the process?
Selling a CPA firm involves preparation, valuation, confidential marketing, buyer matching, negotiation, due diligence, and transition. At Ashley-Kincaid, we start with a no-obligation confidential call to assess your goals and timeline. The full process typically takes 6–12 months, with ideal preparation beginning 2–5 years ahead. We guide you through every step—focusing on market-driven strategies to maximize your value and protect your legacy—while keeping everything 100% confidential.
2. How is a CPA firm valued today? What are current CPA firm valuation multiples?
CPA firms are primarily valued using a multiple of gross recurring revenue (typically 0.75x–1.35x annual revenue, with medians around 1.0x–1.1x for well-positioned practices; premiums of 1.25x–1.5x+ possible for high-recurring revenue (80%+ ideal), strong client retention, specialized niches, solid staff, healthy margins, and low owner dependency). For larger or growth-oriented firms, adjusted EBITDA multiples often range from 3x–5.5x (up to 4x–7x+, or higher in competitive PE processes). We deliver a realistic, buyer-perspective valuation early—based on real transaction data—so you know your firm's true market worth before committing.
3. When is the best time to sell my accounting practice or CPA firm?
The best time depends on your personal goals, firm performance, and market conditions. With strong buyer demand (including private equity-backed platforms), many owners benefit from starting conversations 2–5 years early to optimize value through client diversification, process improvements, tech upgrades, or growth initiatives. Selling when your firm is performing well often yields better terms and higher proceeds. We provide honest timing insights to help you avoid common value-eroding mistakes.
4. How has private equity changed CPA firm sales and valuations in 2025–2026?
Private equity has transformed CPA firm M&A by accelerating deal activity, injecting billions in capital (over $30B+ since 2020, with 100+ deals in 2025 alone), and driving unprecedented consolidation. PE-backed buyers often pay premium multiples for scalable, growth-oriented firms with strong advisory/CAS services, recurring revenue, niches, and leadership—frequently shifting valuations toward adjusted EBITDA metrics (commonly 4x–8x+, with top platforms or competitive processes reaching 7x–12x+).
This creates more exit options and higher potential proceeds for sellers but increases competition and scrutiny on factors like growth potential and operational efficiency. At Ashley-Kincaid, we navigate these dynamics to connect you with the ideal buyers—strategic firms or PE platforms—that align with your vision for a smooth transition, legacy preservation, and maximum value.
5. What makes my CPA firm more valuable to buyers?
Buyers prioritize predictable recurring revenue (ideally 80%+), low client concentration, talented staff for seamless transitions, efficient operations, niche expertise (e.g., tax, advisory, CAS), modern technology, high client retention, and minimal owner reliance. Firms with clean books, strong margins, growth momentum, and low risk command higher multiples—often 0.2x–0.4x (or more) revenue premiums over baselines, or significant EBITDA lifts in PE-attractive deals.
We identify your leverage points early, help position your practice attractively (e.g., through diversification or process upgrades), and guide optimizations to secure top offers while protecting your peace of mind and legacy.
6. How is Ashley-Kincaid different from other CPA firm brokers or M&A advisors?
We prioritize clarity before transactions—delivering buyer-grounded evaluations, risk insights, current market patterns (including PE trends), and unbiased options upfront so you make confident, pressure-free decisions. Unlike transaction-first brokers, we focus on your freedom, legacy, terms, and long-term goals.
Our national experience uncovers opportunities others miss, empowering CPA owners (typically $500K–$15M+ revenue) to achieve superior outcomes in sales, mergers, partial stakes, or exits—whether to strategic buyers or PE platforms.
7. Is the initial consultation confidential and free?
Yes—100% confidential and no-obligation. We protect your information and never share details without permission. Schedule a 60-minute call via our Contact page to discuss your firm, goals, and get honest, tailored market feedback based on real trends—no strings attached.
8. What fees do you charge for helping sell a CPA firm?
Our fees are success-based (contingent on a successful closing). We provide fully transparent pricing during your initial confidential call—no hidden costs or surprises—so you know exactly what to expect before proceeding.
9. Do you help with partial sales, mergers, or transitions involving earnouts?
Yes—we customize every engagement to fit your specific goals and timeline. Our services include:
Full sales of your CPA practice
Mergers for continued growth or scale
Partial stakes or equity rollovers (e.g., for phased succession, staying involved post-sale, or accessing capital while retaining ownership)
Earnout structures to bridge valuation gaps or tie additional proceeds to future performance
In the current market, earnouts and partial transactions are increasingly common—especially with private equity platforms that value continuity and growth potential. Our extensive buyer network includes both strategic regional/national firms and PE-backed consolidators actively seeking quality opportunities that match your vision for legacy, terms, and maximum economic outcome.
10. How do I get started selling or planning my CPA firm exit?
Getting started is simple and completely risk-free.
Contact us today to schedule a confidential, no-obligation consultation. Just visit our Contact page to book a 60-minute call at your convenience.
There’s no pressure—only clarity. We’ll:
Listen carefully to your situation, goals, and timeline
Share honest, up-to-date market realities (including current valuation trends and buyer appetite)
Provide a realistic initial assessment of your options
Outline clear, actionable next steps to help you convert the equity you’ve built into the future you envision—whether that’s full retirement, phased exit, growth merger, or something else
Many CPA owners wish they had started the conversation earlier. A quick, private discussion now can save you time, reduce risk, and position you for the strongest possible outcome.
Ready to Discover Your Firm's True Market Value?
Don't leave your exit to chance in today's dynamic CPA M&A landscape—private equity demand is at record levels, and well-positioned firms are commanding premium multiples.
Schedule your FREE, confidential valuation consultation today and get a clear, buyer-perspective assessment of what your practice could sell for in 2025–2026—before you invest time or money elsewhere.
No obligation
100% confidential
Honest, no-pressure insights from current market data