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Wondering what your CPA firm is worth? In 2025, buyers and private-equity groups are valuing accounting firms based on Adjusted EBITDA—not just revenue. This in-depth guide explains how valuations are determined, how to normalize partner compensation, rent, and one-time expenses, and what multiples firms across the U.S. are achieving. Whether you’re planning to sell, merge, or just want to benchmark your firm’s value, learn what drives today’s market and how to position for a premium outcome.

Private equity firms are increasingly acquiring CPA practices using leveraged buyouts, focusing on adjusted EBITDA to determine valuations and structuring deals with a mix of debt, equity rollovers, and earn-outs. Debt covenants like leverage and coverage ratios shape both purchase price multiples and payment terms, typically resulting in about 60–70% cash at close with the balance tied to equity or performance-based payouts.

The U.S. public accounting industry has witnessed significant consolidation over the years, as many smaller firms merge to achieve operational efficiency, market expansion, and increased competitiveness. However, Provenzano (2022) investigates how U.S. public accounting firms can enhance post-M&A performance through scope economies, stakeholder value, and economic profit and suggests that merely completing a merger is not enough to guarantee enhanced performance.

As the U.S. gears up for the potential return of Donald Trump to the presidency, business leaders, investors, and financial advisors are beginning to consider how his administration may impact mergers, acquisitions (M&A), and tax reform.

The accounting profession is undergoing significant transformation, driven by technological advancements, shifting client expectations, and economic pressures. These changes have created a fertile ground for mergers and acquisitions (M&A) in the CPA industry.

For CPA firms like yours, this isn’t just a trend—it’s an opportunity to supercharge your growth. But diving into M&A without a game plan can lead to headaches instead of success.

Succession planning isn’t just for retiring partners—it’s the cornerstone of a CPA firm’s long-term success. With the accounting industry evolving rapidly, planning for leadership transitions is no longer optional.

As accounting firms face increased pressure from competition, technological disruption, and regulatory complexity, M&A provides an effective avenue for growth, operational efficiency, and broader service offerings.

the U.S. Federal Reserve recently cut its federal funds rate by 50 basis points (bps), marking a change in the central bank’s stance after an extended period of tightening monetary policy. This reduction, aimed at countering slowing economic growth and moderating inflationary pressures, is likely to have broad implications for financial markets and economic activities.

The accounting field is often seen as offering long-term stability and strong career growth, but the report underscores that many students hold misconceptions about the profession.

The U.S. Federal Reserve (Fed) plays a critical role in shaping the country's economic trajectory through its control of interest rates, which directly influence the cost of borrowing.

CBIZ, a prominent Cleveland-based public company providing financial, insurance, and advisory services, announced its plans to acquire the non-attest business of New York-based Marcum LLP in a highly significant deal set for the fall of 2024.

In recent years, the growth among the public accounting Top 100 firms has been nothing short of remarkable. These firms, have shown a significant increase in size, influence, and market reach

CliftonLarsonAllen LLP (CLA), a prominent firm ranked among the top 100 by the International Public Accounting (IPA), with FY22 net revenue of $1.7 billion, has announced that Axiom Certified Public Accountants & Business Advisors has officially joined the CLA family as of August 1, 2024.

In the ever-evolving landscape of the accounting and business advisory sectors, mergers and acquisitions (M&A) are common strategies for firms seeking to expand their market presence, enhance service offerings, and achieve sustainable growth.

Saginaw, Michigan-based Yeo & Yeo CPAs & Advisors, a well-established firm with FY23 net revenue of $44.1 million, has expanded its footprint in Southeast Michigan by merging with Berger Ghersi & LaDuke PLC (BGL) of Bloomfield Hills, Mich., effective July 1, 2024.

An earnout is a contractual mechanism often used in mergers and acquisitions (M&A) to bridge valuation gaps between buyers and sellers. In the context of Certified Public Accounting (CPA) firms, earnouts can play a critical role in ensuring that the acquisition is successful and mutually beneficial.

Understanding the intricacies of firm value and how sellers can leverage this over time is crucial in the realms of finance and business strategy.

As baby boomer CPA firm owners approach retirement, succession planning becomes a critical issue. Internal succession, where the firm's leadership is passed on to junior partners or employees, is often not feasible due to various challenges such as a lack of interested or capable successors.