{"id":136841,"date":"2025-01-12t12:00:21","date_gmt":"2025-01-12t17:00:21","guid":{"rendered":"\/\/www.g005e.com\/?p=136841"},"modified":"2025-01-12t14:52:10","modified_gmt":"2025-01-12t19:52:10","slug":"what-multiples-mean-to-accounting-firms","status":"publish","type":"post","link":"\/\/www.g005e.com\/2025\/01\/12\/what-multiples-mean-to-accounting-firms\/","title":{"rendered":"what multiples mean to accounting firms"},"content":{"rendered":"
<\/strong><\/p>\n plus the appeal of rias.<\/strong><\/p>\n by rory henry<\/i> why are accounting firms measured in revenue multiples while most other businesses are measured in ebitda multiples?<\/p>\n according to allan koltin, accounting industry transaction guru, there is no better reason than because that\u2019s how we\u2019ve always done it in the accounting profession.<\/p>\n <\/p>\n \u201caccounting firms have zero ebitda; they clear out the register every year,\u201d noted koltin. \u201cwhen i talk to firms about private equity, i have to walk them back and explain how you’re going to create your own ebitda. and the biggest piece of it is what we call the \u2018scrape of partner compensation.\u2019 you\u2019re making $1.2 million. can you live on $800,000 if we move that extra $400,000 into an ebitda category and put a multiple of 7x to 11x on that and get capital gain?\u201d asked koltin.<\/p>\n \u201cpartners 55 and older love it. partners who are 35 are not so sure.\u201d <\/strong><\/p>\n plus the appeal of rias.<\/strong><\/p>\n by rory henry<\/i> why are accounting firms measured in revenue multiples while most other businesses are measured in ebitda multiples?<\/p>\n according to allan koltin, accounting industry transaction guru, there is no better reason than because that\u2019s how we\u2019ve always done it in the accounting profession.<\/p>\n <\/p>\n \u201caccounting firms have zero ebitda; they clear out the register every year,\u201d noted koltin. \u201cwhen i talk to firms about private equity, i have to walk them back and explain how you’re going to create your own ebitda. and the biggest piece of it is what we call the \u2018scrape of partner compensation.\u2019 you\u2019re making $1.2 million. can you live on $800,000 if we move that extra $400,000 into an ebitda category and put a multiple of 7x to 11x on that and get capital gain?\u201d asked koltin.<\/p>\n
\nthe holistic guide to wealth management<\/i><\/a><\/p>\nmore: <\/b>tsunami of m&a, pe is disrupting the accounting profession<\/a> | why cpas are best positioned to become financial advisors<\/a> | how wealth management has evolved<\/a> | introducing you to a fulfilling return on relationships<\/a> | rory henry upends the traditional accounting firm<\/a> | why now is the time for cpas to embrace wealth management<\/a>
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/h4>\n
\n read more →<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
\nthe holistic guide to wealth management<\/i><\/a><\/p>\nmore: <\/b>tsunami of m&a, pe is disrupting the accounting profession<\/a> | why cpas are best positioned to become financial advisors<\/a> | how wealth management has evolved<\/a> | introducing you to a fulfilling return on relationships<\/a> | rory henry upends the traditional accounting firm<\/a> | why now is the time for cpas to embrace wealth management<\/a>
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/h4>\n