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Accountancy Practice Valuations

Accountancy Practice Valuations are one of the most common valuation report categories which the Business Valuer Network is asked to work on. There is a constant flow of change of partners in Australia's accountancy practices as new partners are admitted, older partners phase out and mergers and takeovers occurr.

Accountancy practice valuations are called for to allow an unbiased, unemotional valuation to take place.

Accountancy practice valuations are unusual in that they are not usually valued on a multiple of profits. Accountancy practice valuations are usually valued on a multiple of recurring fees or billings.

For example, a metro melbourne accountancy practice valuation may find that the practice is worth 95 cents in the dollar of the $500,000 in fees billed on a recurring basis, whereas a similar sized pracice in Nowra NSW may be valued at 85cents in the dollar.

The types of fees in accountancy practice valuations is also important. for example, mangement fees may attract a higher multiple than audit fees.

What you need for your accountancy practice valuation is a valuer who:

specialises in accountancy practice valuations

is local and

who understands the differing fee strata, locality issues and leakage issues which are involved in accountancy practice valuation.

Business valuer Network valuers also tend to do an EBIT based valuation as a cross reference to the mutliple of gross billings method, which is utilised as a "reasonable man " common sense test of the original accountancy practice valuation based on the multiple of gross fees accountancy practice valuation method.

To discuss your accountancy practice valuation call the BVN co-ordinator graham o'hehir today on 1300634588 or email suppport@businessvaluer.net.au

 



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