You want to sell your accounting firm? Then it's good to know what the takeover market in the accounting firm field looks like. The industry is subject to innovation and automation, and there is pressure on the old-fashioned revenue model.
Due to the impact of the pandemic, the industry is still recovering and this is not without its ups and downs. Accounting firms had a lot less work, as their clients simply had to close or suffered severe drop in demand.
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 the business services sector, which includes an accounting firm, an indicative EBITDA multiple range 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).
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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.
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There are many startups in the industry every year, which also makes visible many businesses with only one person working. Despite the bad period, the number of accounting firms has increased by about 250 businesses.
In figures, the number of accounting offices in 2024 looked as follows(CBS):
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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:
For accountants, it is essential to remain human, because where digitization takes place, automation and reduced fees become a reality. By continuing to offer the very human addition, such as helping with strategic issues or applying for tax schemes or grants, accountants offer the perfect combination between digital and analog.
Rabobank actually ties in closely with #1, because once the digital is taken care of, then comes part two. By using data smartly, it is possible to allocate more time to giving advice. Give advice based on one's own expertise, according to Rabobank.
Because of the changing market, there is a shortage of true professionals. The combination of substantive knowledge and consulting is often missing, while it is precisely this switching that is so necessary. Now, and in the future.
The world of finance and currency is also expanding. In addition to our familiar currencies, new technologies are now coming around the corner, such as blockchain. The accountant is not in the middle of this, so the key is to keep up and check after the fact. By staying on top of it and collecting customer data in real time, there can still be a role for the accountant, Rabobank said.
