You want to sell your accounting firm? Then it's good to know what the takeover market in the field of accounting firms looks like.
There are piles of work waiting for accounting firms, but a structural shortage of skilled personnel won't get you anywhere. The number of business acquisitions in this industry skyrocketed last year, but in 2023 it took a hit.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In business services - the sector to which accounting firms belong - an indicative range of EBITDA multiple of 4.6 to 5.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
Do the calculation
Do you want to buy a business or sell a business in the business services sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the business services sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
Download report
Revenue in the accounting industry follows general economic growth. But even in times of crisis, accounting firms have plenty of work. In fact, supporting clients during the corona period gave more work to the industry, for example through application support for schemes, but also due to backlog of regular work.
Yet accountancy will also face downturns, Rabobank expects. With rising unemployment and low sentiment in the Netherlands, there will be fewer payrolls to process, advisory or special assignments are declining, and fewer investments will also mean fewer credit applications and interim figures.
In figures, the number of accounting firms in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer accounting firms many growth and acquisition opportunities:
Four in ten accounting firms are facing staff shortages (CBS, ING Research). A huge shortage of qualified personnel prevails in the market, which has increased the workload tremendously. The UWV already warned a few years ago about a scarcity of chartered accountants, account controllers and assistant accountants, at both HBO and WO levels. Unfortunately, the situation is unchanged and a shortage of 70,000 employees is expected, according to research by the Big 4(EY, Deloitte, PwC, KPMG).
We are leaving the days of the hourly billing revenue model behind us forever. SRA customer research with Leiden University shows that 81.4% of entrepreneurs in the Netherlands want a progressive accountant. Not the standard tax returns and present financial statements, but strategic advice for the long term. By working data-driven, smart tooling and subscription models, as an accountant you are prepared for the future.
More than 30% of the offices, do not meet the set quality requirements, the annual report of the Supervisory Board of the NBA revealed. This is not so much about substantive work, but more about issues such as privacy laws and the so-called audit license.
The old-fashioned "dusty" accountant is even more common than you might think. Routine tasks performed by accountants are time-consuming and high-paying. In addition to outdated business models, digitization is also in the doldrums. By deploying smart software, the freed up time can be spent on adding value. Think strategic advice and investment opportunities.
