Earnings quality
Buyers need to understand what the firm earns after normalizing owner-specific, unusual, and nonrecurring items.
Value and deal structure
The number matters. So does everything attached to it.
CPA Buyer helps owners understand value through the lens of earnings, risk, buyer fit, structure, timing, and certainty. A strong outcome is the combination of what is paid, how it is paid, and what the owner must do to receive it.
Illustrative value range
A learning tool—not a valuation
Move the slider to your firm's approximate annual revenue. It applies a simple 0.75×–1.2× revenue range—rough multiples sometimes used as a starting reference point for CPA and accounting practices—so you can see how that kind of range moves with size.
This estimate cannot account for earnings quality, concentration, owner dependence, staffing, growth, systems, deal structure, or buyer demand. A firm-specific analysis may be materially higher or lower.
$300K$1,500,000$5M
Illustrative enterprise-value range
$1.15M–$1.80M
The range is intentionally broad and is based on revenue alone. It should not be used to make a transaction decision.
What creates value
Buyers pay for durable earnings they believe will transfer.
The headline multiple is only the final expression of several underlying judgments. Preparation helps an owner understand which judgments can be improved and which risks need to be explained honestly.
Client durability
Recurring work, concentration, retention, pricing, referral sources, and relationship ownership affect confidence in future revenue.
Team depth
A firm is more transferable when employees can serve clients, manage work, and support leadership beyond the selling owner.
Buyer fit
The strongest buyer is not always the one with the highest initial number. Operating fit, financing, timing, and transition capability matter.
Deal structure
Cash, seller notes, earnouts, rollover equity, working capital, contingencies, and transition obligations determine the real economic outcome.
Closing certainty
Funding readiness, diligence discipline, decision authority, legal complexity, and responsiveness affect whether a signed offer actually closes.
Normalized earnings
A buyer needs to understand the business beneath the owner's tax return.
Normalization is not about inflating the result. It is about separating the ongoing economics of the firm from owner choices, one-time items, and expenses that may change after a transaction.
01
Start with reported results
Reconcile revenue, compensation, operating expenses, and cash flow to complete financial records.
02
Identify explainable adjustments
Separate legitimate owner-specific or nonrecurring items and document why a buyer should treat them differently.
03
Reflect replacement costs
Consider the cost of replacing owner labor, leadership, business development, or technical work that will not disappear after closing.
04
Build a defensible bridge
Present a clear path from reported earnings to normalized earnings so buyers can test the logic rather than guess at it.
Compare the whole offer
A higher headline can still produce a weaker outcome.
Offer comparison should make the tradeoffs visible. The owner should understand what is certain, what is contingent, what remains at risk, and what the buyer expects after closing.
Decision factor
Offer A
Offer B
Offer C
Headline value
Offer A:$2.4M
Offer B:$2.25M
Offer C:$2.32M
Cash at closing
Offer A:55%
Offer B:90%
Offer C:75%
Seller note
Offer A:20%
Offer B:10%
Offer C:15%
Earnout
Offer A:25%
Offer B:None
Offer C:10%
Financing
Offer A:Conditional
Offer B:Reviewed
Offer C:Reviewed
Employee plan
Offer A:Limited detail
Offer B:Detailed
Offer C:Detailed
Owner transition
Offer A:24 months
Offer B:9 months
Offer C:12 months
Closing risk
Offer A:Higher
Offer B:Lower
Offer C:Moderate
How CPA Buyer is paid
Fees should be understood before the process begins.
The standard seller engagement is a listing fee plus a 7% success fee, due only when the transaction closes. Buying a firm is free.
Before engagement
The fee structure, scope, exclusivity, termination terms, and any approved expenses are explained in writing.
During the process
There is no surprise invoice for ordinary activity that should be part of the agreed transaction process.
If no transaction closes
Under the standard success-fee model, no success fee is due. Any separately approved third-party cost remains subject to the agreement.
Start with one honest conversation
You do not need a finished plan to ask the first question.
Whether you are years from a transition or actively evaluating an opportunity, the first step is private, practical, and free of obligation.