Accounting Firm — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
4×
Typical
5.5×
Max
7×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 5.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Accounting practices typically trade at 4×–7× EBITDA, supported by recurring compliance fee income and sticky client relationships. The strength of a practice's recurring fee base, its mix of compliance versus advisory work, and the depth of the management team beyond the owner are the primary valuation drivers. Practices heavily reliant on a single partner or with significant exposure to compliance commoditisation attract lower multiples.
Key Value Drivers
- Recurring compliance fee income
- Sticky client relationships with low churn
- Qualified staff and professional accreditation
- Cross-sell potential into advisory services
- Strong cash conversion
Key Risks
- Key partner dependency
- Automation threat to compliance work via AI
- Staff recruitment and retention challenges
- Client concentration risk
- Commoditisation of basic compliance services
Related Industries
Real-World Transaction
Baker Tilly South-East Europe → MHA plc
2025 · Accounting & Professional Services
These transactions involved companies substantially larger than the $1–$50M SME benchmark and are shown for context, not direct comparison.
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.