Are all accounting practices sold for 1.0 times revenues? Hardly. We hear this quite a bit and are perplexed. Do all homes sell for the same amount? Why aren’t cars all priced the same? CPA, Accounting and tax practices are no different. Each practice is unique and priced accordingly. Accounting firms located in populated metropolitan areas will sell for more than practices in located in a rural setting. Practices with strong billing rates, strong staff, strong cash flow, will sell for a higher multiple. Firms that have a nice mix of not only individual and corporate tax, but also accounting to keep cash flow steady throughout the year should sell for greater than 1.0 x’s billings as well. Buyers and Sellers have caught on to this as a whole, but we still get the ol “I thought it was 1 x’s billings” feedback every so often. Personally, I would rather pay a higher multiple on a more profitable practice than an lower multiple on a less profitable firm. Think long-term when buying an accounting practice.