The Difference Between Industry Average and Benchmark Valuation Multiples for Accounting Practices

The Difference Between Industry Average and Benchmark Valuation Multiples for Accounting Practices
August 6, 2018 admin

The current difference between the industry average and benchmark (top 20%) valuation multiples for accounting practices is 1.25 times the adjusted profit (38% improvement variance). Analysing and reducing qualitative risks can substantially improve the value of your practice.

Value Drivers

The number of services provided per client is one of a range of value drivers. Other value drivers for businesses in the accounting industry include:

  • Does your practice have a cloud-based accounting strategy/solution?
  • Can you attract/retain staff with the necessary expertise to support your practice growth?
  • Has your practice developed a unique value proposition to attract new ‘ideal’ clients?
The Difference Between Industry Average and Benchmark Valuation Multiples for Accounting Practices

Growth and Transition Planning Workshop

In conjunction with Westpac’s professional services team, we are facilitating a workshop focused on growth and transition planning for multi-partner accounting practices, including discussing practice valuations in detail. Click here to learn more.