The buyer could end up paying for a client it may not keep. All practice units are unique, and a different set of criteria must be used for valuing each one. Valuation considerations . Although this article does not discuss the different valuation methods, CPAs should keep in mind that there are no hard rules on valuing an accounting practice. All practice units are unique, and a different set of criteria must be used for each.
Many intangibles can affect the valuation.
There are a number of factors that contribute to the realization of agreed-on value, including 1. Practice size by annual fee volume. Historical net income generated by the practice. Seller's ability to assist in transfer of the practice and solidify relationships with the successor firm. Purchaser's competency to manage additional practice.