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.
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?
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.