You want to sell your tax consulting firm? If so, it's good to know what the acquisition market looks like in the area of tax advisory firms.
The number of mergers and acquisitions in the tax world fluctuates, and last year the number of businesses in the acquisition market was quite high.
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 industry to which tax advisory firms belong, an indicative EBITDA multiple range of 4.6 to 5.5 is currently in place, 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 self-employed people in this sector, and therefore the number of businesses with one person working is relatively high.
In figures, the number of tax advisory 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!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer tax advisory firms many growth and acquisition opportunities:
The Dutch tax system is quite complicated. And although the system is improved every year, it remains an exciting matter for the average citizen. As a result, the number of people who outsource their tax affairs also increases every year.
More and more people are interested in the crypto market. And while the number of investors in this market is growing little by little, crypto also involves some tax. As more people dive into this world, there is something to be gained in this area for tax advisory firms.
