The traditional 1X revenue multiple for accounting firms is becoming a relic of the past, with some firms now commanding 4-6X EBITDA valuations. This episode explores the difference between selling a client block versus a true business, the rise of private equity platforms, and what really drives firm valuations in today's market. From acquihires to equity rolls, Marcus and Rachel break down deal structures, share real examples, and discuss what sellers need to watch out for in purchase agreements.
Introducing Collective by DBA
https://collective.cpa
https://www.linkedin.com/company/collectivebydba
Learn More About Dillon Business Advisors
https://www.dillonadvisors.com
https://www.linkedin.com/company/dillonbusinessadvisors
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- (00:00) - Welcome to Who's Really the Boss
- (00:34) - Reflecting on Milestones and Emotions
- (01:57) - Transition to Empty Nesters
- (02:07) - Celebrating Life's Seasons and Looking Ahead
- (03:14) - Discussion on Mergers and Acquisitions (M&A)
- (06:23) - Valuation and Growth Strategies
- (08:14) - Challenges and Opportunities in Acquisitions
- (09:38) - Owner's Role Post-Acquisition
- (21:03) - Employment Contracts and Budget Considerations
- (25:25) - Building Sustainable Businesses
- (27:29) - Understanding Firm Valuation and Cash Components
- (29:31) - Equity Roll and Future Growth Potential
- (32:31) - Private Equity and Strategic Buyers
- (35:28) - Marketing and Sales Considerations for Selling
- (37:03) - Navigating Deal Terms and Guarantees
- (38:23) - Organic Growth and EBITDA Challenges
- (40:34) - Acquisition Strategies and Personal Experiences
- (44:35) - Building Relationships and Learning from Others
- (49:36) - Final Thoughts and Encouragement
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