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How Do Accounting Firms Value a Book of Business for Sale?



How Do Accounting Firms Value a Book of Business for Sale?

When accounting firms find themselves in the position of having to sell their business, they’ll often wonder how to go about choosing their asking price and finding the right buyer.

This question can be answered by looking at the accounting firms that have gone through this process before, knowing what made them successful and how they were able to sell their book of business. Here are three things accounting firms need to know about valuing their business for sale.

What does an accountant’s client book look like

In some cases, it’s clear how much a book is worth. In other cases, it’s far more difficult to figure out. With business valuations all across the board, it helps to know what makes up an accountant’s client book and how accounting firms value them. For example, here are some things that could impact how much a firm could be worth:

The industry and geography of clients The services they use (For example, an accounting firm that mainly does payroll will likely be worth less than one who handles audits.)

The extent of client relationships and depth of interactions How long accounts have been with an accountant And as noted above, in some cases value can be estimated based on historical earnings.

The valuation method is based on lifetime revenue, not profit

Before you get too excited about your company’s book of business, remember that it’s not just about profit. In fact, accounting firms generally value a book of business based on lifetime revenue rather than profits alone.

This means that even if your company has suffered losses in recent years, it can still be valued highly if you have enough clients who generate long-term income.

The important takeaway here is that if you want to sell your book of business, you need to start thinking seriously about marketing and client retention strategies—as well as how you might leverage those existing clients into potential new ones.

Good relationships with current clients can provide future referrals, which is invaluable for maintaining high profitability rates in accounting services.

In demand specialties command higher valuations

Being in-demand has benefits—most notably, it will increase your valuation. If you’re one of only a few dozen tax partners in your firm (for example), then there’s less competition when it comes to finding buyers.

After all, potential acquirers know that they can’t steal you away from your current employer unless they make an extraordinary offer and that rarely happen.

You may even be able to name your price. In general, accounting firms evaluate accountants based on three main factors: their experience level and years with their firm,

how well they contribute to profit margins and overall revenue generation, and how essential they are to clients’ operations or to other employees’ workflows.

Finding a new home could cost you more than you think

From broker’s fees to closing costs, there are plenty of hidden expenses that can really add up. One potential cost not everyone considers: value-added tax (VAT).

Understanding how VAT works can help you avoid unexpected charges down the road. To learn more about VAT and what accounting firms need to know, check out our latest eBook: The Ultimate Guide to VAT on US Acquisitions.

Sellers should consider all scenarios before going public

Just because you are an accountant who has been contacted by someone interested in buying your practice, it doesn’t mean that selling is a good idea. In fact, before you accept any offer, you should consider all scenarios.

For example, if selling out sounds like a nice thing to do right now (maybe to pay off your mortgage or take that dream vacation), then make sure you’re doing it with your eyes wide open and not just reacting to immediate monetary needs.

No matter how much money is on the table, if taking it would put you or your family at risk of losing their life savings—or even worse, their retirement security—then walk away from any deal. Once gone, there will be no getting them back!

Consider partnering with another firm

Some firms may be interested in buying your entire book of business but are only willing to do so if they can form a partnership with another firm. If you’re looking to sell your practice outright, you may need to look into forming these types of partnerships.

If you’re open to selling your practice on a small scale (i.e., selling an individual client or group of clients rather than everything),

talk with other accounting firms and see if they would be interested in purchasing one or two clients from you on an individual basis.

You never know—the right person at the right time might take advantage of that opportunity and make you an offer that’s too good to pass up!

Two ways in which sellers can increase proceeds from their businesses

A higher sale price and a lower cost basis. These issues are interrelated. It’s not uncommon, for example,

to find buyers offering more than one seller was initially seeking — but when they did their financial valuations and compared them with what they wanted from sellers to get involved in a transaction, it was clear that both sides would benefit from lowering sale price expectations.

In fact, according to Wolters Kluwer Financial Services’ 2009-2010 Guide to Valuing Small Businesses, most buyers pay less than sellers anticipated: 45 percent reported paying less than $1 million; 26 percent between $1 million and $5 million; 8 percent between $5 million and $10 million; 7 percent more than $10 million.

When looking to sell your accounting practice…

When looking to sell your accounting practice, one of your largest assets is, well, your asset. Yes, that’s right. Your book of business. Many accounting firms struggle with how to properly put a value on their business when they consider selling it.


If you own your book of business and have been considering selling it, there’s no time like the present. A successful business sale can be life-changing and provide an attractive exit strategy. If you don’t already know, how do accounting firms value book of business for sale?

You may want to find out sooner rather than later. A growing economy, recent tax reforms, and increased interest in buy/sell transactions will only continue to fuel robust demand over the next few years. Get ahead of today’s opportunities by getting a head start on future planning, now.

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Saving Your Carpets This Winter: Tips and Tricks To Keep Your Home Clean



 carpet cleaning Toledo 

Chilly months are just around the corner, and it can be tough to keep your carpets in tip-top shape when you’re dealing with family and pets tracking in slush, mud, and salt. Here, we’ll take a look at the top things that you can do to help save your carpets over the winter.

Consider a Shoes-Off Policy

We know–it can be tough to remember to take your shoes off the moment you walk into the door, but doing so can help keep outside grime off of your carpet. In addition to asking family to remove their shoes when they come inside, consider a basket near the front door with comfy slippers to encourage guests to do the same.

Replace Your Outdoor Mats

Switching over from fall to winter welcome mats can be a smart way to help get dirt and salt off of your shoes before you enter your home. Look for a welcome mat that’s rough and filled with ridges to help pull any debris off your shoes before you enter the house.

Try Pet Booties

It may sound a little silly, but purchasing booties for your pets can make it easier to keep their paws clean after they go outside to go to the bathroom. Bonus: your pet’s booties can also help kep their feet safe from irritating salt and ice when you head out for chilly winter walks.

Use Runners

Placing carpet runners over your flooring can make it easier for you to keep your floors clean during the winter. A well-placed runner over the most commonly traveled areas of your house can help your carpets last for years longer than they would without covering.

Don’t Forget To Have Your Carpets Cleaned By The Pros

Be sure to book a professional carpet cleaning Toledo for the end of the winter season. Failure to do so can result in marks around your runners, and can allow dirt and grime to set in for good. Add a professional carpet cleaning to your spring cleaning to-do list after the chilly months have passed.

Call SteamEx For Carpet Cleaning Services Toledo

No matter what the time of year, it’s important to have your carpets cleaned regularly to help them stand the test of time. We’re here to help. Reach out to us today to chat about how our Toledo carpet cleaning company can help keep your floors in tip-top shape.

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Yarder Manufacturing: Sustainability of Sheet Metal Laser Cutting



sheet metal laser cutting

The Sustainability of Sheet Metal Laser Cutting: Breaking Things Down

If you had to make a list of some of the issues that are critically important for people today, sustainability is right at the top.

People want to do their part to help protect our fragile environment for future generations and, in the B2B world in particular, they’re increasingly choosing partners for their supply chains that believe the same. Thankfully, many organizations like Yarder Manufacturing are going out of their way to accomplish precisely that, offering sustainable laser cutting services that allow us to do our part to combat these types of issues head-on.

Sheet Metal Fabrication in a Sustainable World: An Overview

One of the ways in which sheet metal laser cutting services in particular are inherently sustainable has to do with their precise nature. Because the laser can be used for extremely thin and accurate cutting, you’re dealing with far less material waste than you would be through alternative methods.

Some other types of cutting techniques can have tolerances of roughly 1/8” which, to be fair, is quite variable. But with laser cutting, you’re looking at tolerances that can get all the way down to 0.005”. This leads to a far higher material utilization rate than most clients are commonly used to.

This makes it all the more beneficial that laser cutting can be used on any type of material you might be working with. And now with our fiber optic laser this even incudes copper that was not previously possible because of the reflective properties.

Another one of the major reasons why sheet metal laser cutting  (and this type of fabrication in general) is sustainable has to do with the low power utilization that this type of equipment is known for. With other types of tools, you’re typically dealing with machines that have a lot of moving parts. Those parts require a significant amount of energy to operate, thus increasing costs for businesses and increasing their carbon footprint at the same time.

With laser cutting, you don’t have to worry about that. Laser cutters don’t require a lot of movement to operate efficiently, thus consuming smaller amounts of energy as well. There are also no lubricants needed in sheet metal laser cutting that could potentially harm the environment.

Finally, one way that a lot of companies have been embracing the sustainable nature of laser cutting has to do with investing in high-quality machines that are built to last. There are manufacturers that are building laser cutters that can last 15 years or more, even under heavy use. This again helps to reduce contamination from older and less efficient equipment and helps save money on behalf of the buyer at the same time.

If you’d like to find out more information about the lengths a sheet metal laser cutting company is willing to go to in order to be sustainable, or if you’d just like to discuss the specifics of your next big project with someone in a bit more detail, please don’t delay – contact the team at yarded Manufacturing today.

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How To Properly Protect Your Commercial Business From Harm



commercial video surveillance systems

If you run a business, it is important for you to make sure you protect it. Regardless of whether you run a small business, a medium-sized company, or a large enterprise corporation, you need to protect yourself against a variety of threats. Even though a lot of people are focused on cybersecurity, it is also critical to pay attention to your physical security. What are a few of the most important areas you need to consider if you want to make sure that your company is protected from harm?

The Right Commercial Video Surveillance System

First, you need to invest in quality commercial video surveillance systems. There are several reasons why they are important. They include:

  • Security cameras can serve as a deterrent against people who might otherwise try to steal from your company.
  • You can use security cameras to support your employees in the event of a dispute.
  • Security cameras could also encourage your employees to stay on task, increasing productivity.

Think carefully about the different commercial video surveillance systems, and decide which one is right for your needs.

Support From the Right Security System Company

You also need to find the right security company to provide you with the support you require. For example, if your business is not open during the night or on weekends, you need a security company that can keep an eye on your security system and let you know if something goes wrong. If you know someone is consistently watching your company for you, you will have an easier time focusing on the task at hand or relaxing when you go home in the evening.

Commercial Fire Alarm Systems and Smoke Detectors

While you should certainly think about burglars and criminals, you also need to think about fires. A fire can happen at any time, and it is important for you to invest in quality smoke detectors and fire alarm systems. Ideally, you should have a fire alarm system that will automatically notify the fire station if a fire is detected. You might also want to invest in some sprinklers that can go off automatically to put out any flames. Do not forget that you need to get carbon monoxide detectors as well, as this colorless, odorless gas is very dangerous.

Protect Your Company Accordingly

Ultimately, these are just a few of the most important points you should keep in mind if you want to make sure your business is protected. There are plenty of options available, and you need to consider the benefits and drawbacks before you decide which option is best for your needs. Keep in mind that this is not something you need to decide on your own. Do not hesitate to reach out to a professional who can help you. At APC, it would be our pleasure to help you find the right security system for your business. Do not hesitate to reach out to us to learn more about how we can assist you.

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