ncCPAp on the GO!

Valuation of a CPA firm

  • 1.  Valuation of a CPA firm

    Posted 22 days ago
    Hello friends!

    An 83 year old CPA wants to sell his solely owned firm. The firm employs a 30 yr old senior accountant ( not a CPA), a junior and a secretary. The owner has  health issues that  resulted in a severe decline in client service and the loss of several major clients over the past 5 years. The owner is holding firm his promise of an equity interest to the senior accountant upon his certification.

    I understand that a "usual and customary"  selling price would be 1X billing, paid out over 4-5 years. I believe that this business should be sold at a steep discount  but have no idea what is fair.

    Any advice or suggestions would be sincerely appreciated! I look forward to seeing all of you at the NCCPAP Symposium this Wednesday.


    ------------------------------
    Pamela Diamond
    CPA, PFS
    CREATIVE WEALTH BUILDERS, LLC
    West Hempstead NY
    ------------------------------


  • 2.  RE: Valuation of a CPA firm

    Bronze Most Valuable Member
    Posted 21 days ago
    Depending on location my 38 year old partner would be interested in acquiring this firm. At the very least call to discuss as we specialize in taxation and business valuation and have valued several CPA firms in the past. Thanks, Ed Heben (914) 579-2700

    ------------------------------
    Edward Heben
    EDWARD D. HEBEN, CPA
    Thornwood NY
    ------------------------------



  • 3.  RE: Valuation of a CPA firm

    Bronze Most Valuable Member
    Posted 21 days ago
    Usually the customary sale is over 3 years and the 1/3 of the fee is given to the owner. If you'd like I have a sample agreement that can be used as a start for the agreement.
    best
    Irene

    ------------------------------
    Irene Wachsler, CPA
    Wachsler CPA LLC

    Contact:
    Irene Wachsler, Trusted Biz Advisor for small business & gig economy
    Mass & NY Film Tax Credits
    Wachsler CPA , LLC
    Cell: 781.883.3174
    Email: irene@iw-cpa.com
    ------------------------------



  • 4.  RE: Valuation of a CPA firm

    Bronze Most Valuable Member
    Posted 20 days ago
    Irene
    could you send me a copy of the agreement.

    Thank you.

    Mike Schneider
    michael.schneider@MLSCPA.com

    ------------------------------
    Michael Schneider CPA
    MICHAEL L. SCHNEIDER, CPA
    Cedarhurst NY
    516-374-8400
    ------------------------------



  • 5.  RE: Valuation of a CPA firm

    Bronze Most Valuable Member
    Posted 20 days ago
    Next week when I'm back from LITPS

    Wachsler CPA, LLC
    Irene Wachsler, CPA
    781.883.3174
    Sent from my iPhone





  • 6.  RE: Valuation of a CPA firm

    Bronze Most Valuable Member
    Posted 20 days ago
    Thanks. I am also in attendance.

    Mike





  • 7.  RE: Valuation of a CPA firm

    Posted 21 days ago
    What city and state is the firm at?
    --
    Sent from my iPhone





  • 8.  RE: Valuation of a CPA firm

    Posted 21 days ago
    Nassau County, Long Island, NY

    ------------------------------
    Pamela Diamond
    CPA
    CREATIVE WEALTH BUILDERS, LLC
    West Hempstead NY
    ------------------------------



  • 9.  RE: Valuation of a CPA firm

    Posted 20 days ago
    Hi Pamela:

    Our firm would be happy to speak with him.

    ------------------------------
    JOHN VISSICCHIO
    RICHARDS VISSICCHIO DOUGLASS CPAS PLLC
    JERICHO NY
    ------------------------------