Mergers—A Perspective on the Current Status of Accounting Firm Mergers

Source: CPA Trendlines

Following is based on an interview with Leon Faris of Professional Accounting Sales (www.cpasales.com):

• Accounting firms under $1 million in revenues are attractive acquisition candidates.
• These firms are also eager to find merger partners.
• Prices are in the area of 1.25 times revenue. Some areas like South Florida are in the range of 1.35 to 1.45 times revenue. Rural areas are less—around 1.
• Sellers will realize a higher value by using a professional advisor.
• There are lenders that will finance sales for sellers. Don’t expect payment in full from the buyer.

For the complete article, click here and type"Leon Faris" in the search box and read "3 Things to Know Before Buying or Selling an Accounting Firm" in the March 14, 2008, posting.

From CPA Trendlines, posted March 14, 2008, http://cpatrendlines.com.

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