Small accounting firms usually sell for about 1 to 1.5 times annual revenue. Firms with $1M to $10M in revenue are priced on profit instead, often at 4 to 6 times adjusted EBITDA, with standout firms going higher.
Those ranges come from the people doing the deals. Over the last three years, the Growing Your Firm podcast has interviewed brokers, private equity buyers, bankers, lawyers and owners who sold. This page brings their numbers into one place, with a link to every episode.
Key takeaways
- Firms under about $1M in revenue: about 1 to 1.5x revenue (Geoff Bruskin, Dec 2024). Brick-and-mortar practices: 1.0 to 1.35x (Todd Steinberg, Apr 2025).
- Lower middle market: many firms trade around 4 to 6x adjusted EBITDA (Geoff Bruskin, Aug 2026).
- Cash at close is often 70 to 90% of the price, with seller notes for the rest (Todd Steinberg, Apr 2025).
- Buyers pay more for recurring revenue, profit near 30% before owner pay, and work that runs without the owner.
The valuation ladder
What accounting firms sell for, by size
How accounting firm valuations work in 2026
The size of the firm decides the method. Below about $1M in revenue, buyers price a firm on revenue, because most of the profit is the owner’s own work. Above that, they price on profit, measured as adjusted EBITDA.
Doug Lewis of Visionary Group says profitability is the first thing buyers look at. His benchmark is about 30% profit before owner pay (Mar 2026 episode).
“A strong CAS practice right now, those are trading for premiums.”Doug Lewis, Managing Director, Visionary Group
Buyers also look at size per person. On the buyers’ panel, Kyle Pezzi looks for $130,000 to $180,000 in revenue per employee, and Marcus Dillon aims for $250,000 with owner production under 1,200 hours a year.
| Firm size | How it is priced | Range quoted | Source |
|---|---|---|---|
| $100K to $1M revenue | Gross revenue | 1 to 1.5x | Bruskin, Dec 2024 |
| Brick-and-mortar practice | Gross revenue | 1.0 to 1.35x | Steinberg, Apr 2025 |
| $1M to $10M revenue | EBITDA | 3 to 11x, by structure and service mix | Bruskin, Dec 2024 |
| Lower middle market today | Adjusted EBITDA | Often 4 to 6x | Bruskin, Aug 2026 |
How deals are paid for
Price is only half the deal. How much arrives at closing, and what depends on the years after, matters as much.
Deal structure
One $8M listing, split by how it is paid
Typical terms quoted
70 to 90% cash, seller notes for the restTodd Steinberg, Apr 2025
SBA loans fund most deals from $500K to $5M, with about 10% from first-time buyersShannon Hay and Sarah Sharp, Oct 2025
Sellers increasingly want cash up front over earn-outsSarah Sharp, Oct 2025
Terms to read closely
Working capital adjustments can cut a headline price below a smaller all-cash offerSarah Sharp, Oct 2025
Non-compete terms can keep a seller out of the profession for yearsSharrin Fuller, Oct 2025
Retention clauses pay only if clients stay after the saleGeoff Bruskin, Aug 2026
“The earnout died immediately, and yes, that’s partly private equity’s fault.”Sarah Sharp, Partner, SK&S Law, on financing firm acquisitions
Sharp also warns that a $3M offer reduced by working capital can be worth less than a $2.9M all-cash offer. Read every adjustment before you compare offers.
Who is buying accounting firms
Private equity now leads the market. Capstone Partners data cited in the Aug 2026 episode put financial buyers at 54.8% of accounting-services deals so far in 2026, with their deal volume up 69.1% year over year.
Firms also buy firms. Toby Kommer has made about 35 acquisitions in 10 years, growing from about 12 to roughly 250 people (Oct 2026). Matthew May’s bankers contacted more than 200 potential buyers, heard from 11 serious groups and closed with a private equity rollup after a nine-month process (Oct 2025 panel).
Not every advisor is comfortable with the prices. Jennifer Wilson of ConvergenceCoaching worries about valuations of “9, 10, even 14 times earnings” (Oct 2025).
What raises your firm’s price
Buyer scorecard
What buyers pay more for, and what makes them pause
Pays more
Recurring subscription revenueBruskin, Aug 2026
Profit near 30% before owner payLewis, Mar 2026
No client above about 3% of revenueBruskin, Aug 2026
Staff who have stayed 5 to 10 yearsPoe, Jun 2023
Documented, standardized workflowsLewis, Mar 2026. Bruskin, Aug 2026
Makes buyers pause
An owner who bills 2,900 hours a yearBeery, Oct 2025
Paper-based workflows and manual systemsBeery, Oct 2025
High partner dependency, no succession planLewis, Mar 2026
Staff with under 1 to 2 years of tenurePoe, Jun 2023
Inconsistent profitabilityLewis, Mar 2026
Why documented workflows raise the price
A buyer is paying for work that keeps happening after you leave. Geoff Bruskin says buyers ask how work moves from intake to delivery and review, who owns each step and how deadlines are tracked. A repeatable workflow lowers the risk of the transition (Aug 2026).
The owners who sold say the same. Justine Lackey’s documented bookkeeping workflows let her firm run without her before its 2023 sale (Dec 2025). Adam Shay grew his firm to nearly $2.5M with documented processes before it was acquired (Jun 2026).
“A key to really scaling is realizing that you’re the bottleneck and realizing where you’ve got to let go.”Adam Shay, CPA
Buyers need the same thing after closing. Toby Kommer moves every acquired firm onto common technology, and Ashley Rhoden calls the first 100 days make-or-break (Oct 2025).
Make your recurring work run without you. Jetpack Workflow puts every recurring client job, owner and deadline in one view, so a buyer, a partner or a new manager can see how the firm runs. Set up one service line this month and see it work before your next close.
Rough range check
Enter your numbers to see where the guest ranges above would put your firm. This is a starting point for a conversation with a broker, not a valuation.
Revenue method (1 to 1.5x)Enter revenue
Profit method (4 to 6x adjusted EBITDA)Enter EBITDA
Ranges quoted by Geoff Bruskin (Dec 2024, Aug 2026). Firms under about $1M in revenue are usually priced on revenue.
Accounting firm valuation questions
How much is a small accounting firm worth?
Firms with $100K to $1M in revenue usually sell for about 1 to 1.5 times annual revenue, according to broker Geoff Bruskin. Brick-and-mortar practices often land at 1.0 to 1.35x, according to Todd Steinberg.
What EBITDA multiple do CPA firms sell for?
Many lower-middle-market firms trade around 4 to 6 times adjusted EBITDA, according to Geoff Bruskin in 2026. One listing he described asked about 7.3x for a firm with recurring subscription revenue and low client concentration.
How are accounting firm acquisitions financed?
SBA loans fund most deals between $500K and $5M, with first-time buyers putting in about 10% of the total cost, according to banker Shannon Hay. Cash at close is often 70 to 90% of the price.
What makes an accounting firm more valuable?
Recurring revenue, profit near 30% before owner pay, low client concentration, long-tenured staff and documented workflows that run without the owner.
Figures are guest estimates, examples and cited market data from Growing Your Firm podcast episodes, dated where they appear. They are not financial, legal or valuation advice.
