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Accounting Practices Business Valuation Formula: |
| This is a general business valuation formula for accounting practices based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing or established accounting/tax business for sale. |
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Accounting Practice Valuation Formula: 100% of annual gross sales. |
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Broker Comments: As a small business broker in Arizona for over 10 years that has sold a number of accounting and tax practices it’s been my experience that this valuation formula or method holds up extremely well. CPA practices are some times able to get over 100% of annual sales if they are well established and have a book of business or specialty that is very attractive to the buyer. |
| Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy because conditions for establishing an asking price for a small business can vary based on number of different factors. |
