Tax Advisory 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
Tax advisory businesses typically trade at 4×–7× EBITDA. Complex advisory work with premium fees, recurring compliance and planning income, and investigation or dispute capability are the primary value drivers. High barriers to entry through professional qualification and accreditation support strong multiples. Regulatory and legislative changes, key technical adviser dependency, and competition from large accountancy firms are the main risks.
Key Value Drivers
- Complex advisory work with premium fees
- Recurring compliance and planning income
- Tax investigation and dispute capability
- Cross-sell from accountancy or legal base
- High barriers to entry (professional qualification)
Key Risks
- Tax policy and legislation changes
- Key technical adviser dependency
- Reputation risk from aggressive planning
- Competition from larger firms
- Client turnover on specific engagements
Related Industries
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.