do the math and don’t be afraid to pay more or ask for more.
by marc rosenberg, cpa
partners in accounting firms are familiar with the rule of thumb that a cpa firm’s goodwill is worth one times fees; however, like many other “rules of thumb,” this notion is often incorrect.
when buyers begin to think about how much they will pay for a smaller firm, they often have the “1 x fees” concept in mind. then, when sellers are bold enough to ask for a price in excess of one times fees, buyers often balk because they feel that the asking price is too rich.
use this white paper to make your case.