What is your firm worth?

Use the calculator below to estimate your Adjusted EBITDA, the number buyers actually pay a multiple on. Enter your figures and see a real-time valuation range based on current market multiples.

The number on your tax return is not the number buyers use.

In accounting firm M&A, valuation is built on Adjusted EBITDA, normalized to reflect what a buyer would actually earn. Partner draws, personal expenses, one-time costs, and related-party transactions are all scrutinized. Getting this right before you go to market is the difference between a deal that closes at your number and one that does not.

Buyers normalize everything
Every P&L line gets reviewed. Partner draws, personal perks, and related-party rents are adjusted to market before a multiple is applied.
Add-backs move the number
Legitimate add-backs can increase Adjusted EBITDA by 20 to 40 percent above reported income, which flows directly into your valuation.
Know it before you negotiate
Sellers who understand their Adjusted EBITDA before going to market negotiate from strength. Those who learn it at the table negotiate from surprise.

Step-by-step example: from revenue to Adjusted EBITDA

This is how buyers and their advisors build the number, starting with reported revenue and working down to a normalized figure that reflects true cash earnings.

Scroll down to the calculator
Component
What it includes
Example
Starting point
Total revenue
Client fees, advisory, tax preparation, audit, and consulting services
$10.0M
minus
Subtracted
Operating expenses
Incl. actual partner draws
Staff salaries, rent, software, marketing, plus all partner compensation as reported
($7.5M)
equals
Interim
Operating income
Revenue minus all reported operating expenses
$2.5M
add back interest, taxes, depreciation, amortization
EBITDA
EBITDA
+ Interest $0.2M  /  Taxes $0.5M  /  Depreciation $0.1M  /  Amortization $0.2M
$3.5M
Normalization adjustments added back to reflect true cash earnings
Key add-back
Partner comp normalization
Above-market draws
Actual draws minus market-rate salary for an equivalent management role (typically $200K to $300K per partner)
+$0.75M
Add-back
One-time expenses
Non-recurring items
Legal disputes, office relocation, ERP implementation, unusual recruiting costs
+$0.15M
Add-back
Personal & discretionary
Run through the firm
Auto, travel, club memberships, family payroll, personal life insurance
+$0.10M
Add-back
Above-market rent
Related-party lease
Rent paid to a partner-owned entity, adjusted to fair market rate
+$0.05M
Final
Adjusted EBITDA
$3.5M + $0.75M + $0.15M + $0.10M + $0.05M = your true earnings baseline
$4.55M
CPA firm multiples typically range from 4x to 8x Adjusted EBITDA. At 5x, a $4.55M Adjusted EBITDA equals an estimated value of $22.75M.

Calculate your firm's Adjusted EBITDA

Enter your numbers below. Results update in real time and apply current market multiples to estimate a valuation range.

Nothing you enter here is saved or transmitted. All calculations happen in your browser only.

Adjusted EBITDA Calculator
Enter whole dollar amounts. For planning purposes only.
Revenue
$
All client fees and advisory revenue for the fiscal year
Operating expenses (as reported)
$
$
Total paid to all partners
$
$
$
Marketing, professional fees, insurance, admin, and overhead
EBITDA add-backs (I, T, D, A)
$
$
$
$
Intangibles from prior acquisitions
Normalization adjustments
$
What you would pay a non-owner manager for the same work, all partners combined. The excess above actual draws is added back.
$
Legal, relocation, system migrations
$
Auto, travel, memberships, family payroll
$
Difference between related-party rent and market rate
$
Total revenue$5,000,000
Total operating expenses($3,800,000)
Operating income$1,200,000
+ Interest, taxes, depreciation, amortization+$425,000
EBITDA$1,625,000
+ Partner comp normalization+$550,000
+ All other adjustments+$150,000
Adjusted EBITDA $2,325,000
Valuation multiple: x Adj. EBITDA Estimated value: $11,625,000

For planning purposes only. Actual valuations depend on growth rate, client concentration, service mix, geography, deal structure, and buyer type. Work with a qualified M&A advisor before going to market.

Common add-backs in CPA firm transactions

Buyers and their advisors will scrutinize every line of your P&L. Knowing which items qualify as legitimate add-backs and documenting them clearly is one of the highest-value steps before going to market.

Partner compensation adjustments
  • Excess draws above a market-rate managing partner salary, typically the largest single adjustment
  • Compensation paid to inactive, semi-retired, or part-time partners
  • Transition bonuses or deferred comp paid ahead of the sale
Personal & discretionary expenses
  • Vehicle payments, insurance, and fuel
  • Personal travel, meals, and entertainment
  • Country club and professional association memberships
  • Life insurance premiums for partners or their families
One-time & non-recurring charges
  • Litigation or legal settlement costs
  • Office relocation or build-out expenses
  • Technology platform migrations and ERP implementations
  • Unusual recruiting or retention bonuses tied to a single period
Related-party transactions
  • Above-market rent paid to a partner-owned building or LLC
  • Management or consulting fees paid to owner-controlled entities
  • Loans from the firm to partners that function as compensation
Standard EBITDA add-backs
(I, T, D, A)
  • Depreciation on equipment, furniture, and leasehold improvements
  • Amortization of client lists, non-competes, and goodwill from prior acquisitions
  • Interest expense on credit lines, loans, or acquisition debt
  • Federal and state income taxes or pass-through distributions
Revenue adjustments
  • One-time engagements unlikely to recur after close
  • PPP forgiveness or other non-operating income included in revenue
  • Revenue tied to relationships the seller is taking post-close
The partner comp adjustment surprises most sellers
In firms where partners draw $800K to $1M or more per year, buyers benchmark those draws against a $200K to $300K market-rate replacement. The gap flows directly into Adjusted EBITDA and can move enterprise value by several million dollars. In high-draw firms, this single adjustment is often larger than every other add-back combined. Knowing your number before negotiations start is not optional. It is leverage.

Structured. Confidential. Well-aligned.

CPA Deal Desk gives firm owners a structured way to understand their options, connect with qualified buyers, and move forward with clarity.

01
Connect
Start with a short, confidential conversation about your situation, your goals, and your timeline.
02
Get matched
We identify buyers aligned to your firm's size, geography, service mix, and long-term objectives.
03
Move forward
Our structured process keeps you in control at every step, with full confidentiality throughout.

Schedule a confidential conversation

A conversation with CPA Deal Desk gives you the full picture, including how buyers in the current market are underwriting firms like yours.

No obligation. No public listing without your approval. Fully confidential.

CPA Deal Desk White
About Us

A dedicated, confidential platform built specifically for buying and selling accounting firms. We connect firm owners, acquirers, and investors through a structured, professional marketplace designed to make every transaction clear, efficient, and secure.

Privacy

Not ready to sell?
We'll help you build value.