The short answer: Small accounting firms sell for about 1.0× revenue or 2.33× SDE, a $500K-revenue firm with $200K SDE prices near $465K, $500K. With an SBA 7(a) loan you put down roughly 10% (~$50K) plus closing costs and working capital. Pay toward the top of the range only for recurring revenue, tenured staff, and low client concentration.
Purchase price by firm size
Accounting firm pricing converges around two anchors: ~2.33× SDE and ~1.0× revenue. For a healthy firm at a ~40% owner margin, the two land in the same place.
| Revenue | SDE (~40%) | Price @ 2.33× SDE | Price @ 1.0× rev |
|---|---|---|---|
| $250,000 | $100,000 | $233,000 | $250,000 |
| $500,000 | $200,000 | $466,000 | $500,000 |
| $1,000,000 | $400,000 | $932,000 | $1,000,000 |
BizBuySell's 2025 data pegged the average revenue multiple at 1.11× and the earnings multiple at 2.34×, so a slightly higher number is defensible for quality firms. Check current comps on the accounting firm multiples page.
What moves the multiple
| Pushes multiple up | Pushes multiple down |
|---|---|
| High recurring monthly/quarterly revenue | Revenue concentrated in seasonal 1040s |
| Tenured staff who stay post-close | Owner personally does all the work |
| Low client concentration, high retention | Top few clients >25% of fees |
| Clean systems, modern software | Paper files, undocumented processes |
Down payment & the full cost stack
The sticker price isn't the cash you need. On an SBA 7(a) acquisition, budget for:
- Equity injection, ~10% of project cost. Part can sometimes be a seller note on full standby that counts toward your injection.
- SBA + closing fees, guaranty fee, packaging, and closing costs.
- Diligence, legal and a quality-of-earnings review to confirm SDE and retention.
- Working capital, payroll and software through your first tax season before collections ramp.
Seller notes do double duty
A seller note lowers your cash at close and keeps the seller invested in a smooth transition, which is exactly what protects client retention. See SBA loans for how notes fit the stack.
A worked deal
You buy a firm with $500,000 revenue and $200,000 SDE at 2.33×, a $466,000 price.
| Line | Amount |
|---|---|
| Purchase price (2.33× $200K SDE) | $466,000 |
| Equity injection (~10%) | $46,600 |
| SBA 7(a) loan (~90%) | $419,400 |
| Est. annual debt service (10 yr, ~11%) | −$69,300 |
| SDE available | $200,000 |
| Cash flow after debt (pre-owner-wage) | $130,700 |
| DSCR (SDE ÷ debt service) | ~2.9× |
Even after the loan payment, the firm throws off ~$130K before you draw a formal salary, and the DSCR clears lender minimums with room to spare. Reserve a market wage for yourself, and the deal still cash-flows. Model your own version in the valuation calculator, then read how SBA financing works.
Run this deal with your numbers
Price, down payment, loan payment, and cash flow after debt, instantly.
Frequently asked questions
Most small firms sell for about 1.0× revenue or 2.33× SDE. A $500K-revenue firm with $200K SDE prices near $465K, $500K. With an SBA loan you'd put down ~10% (~$50K) plus closing costs and working capital.
SBA 7(a) generally requires ~10% equity. On a $500K firm that's ~$50K, and part can sometimes be covered by a standby seller note that counts toward your injection.
Around 2.33× SDE is the anchor, with a range of ~1.8×, 3.25×. Pay top-of-range only for recurring revenue, tenured staff, low concentration, and low owner dependence.
Yes, SBA guaranty and packaging fees, legal and quality-of-earnings diligence, working capital through the first busy season, and any transition/earnout payments. These add a few percent on top of the down payment.
Sources
- Accounting firm revenue & earnings multiples, BizBuySell Valuation Benchmarks (2025).
- SBA 7(a) equity injection & DSCR standards, sba.gov 7(a) program; SOP 50 10 8.
