Accounting Firms. More Buyers. Higher Valuations. AI.
Sunbelt Business Advisors is Minnesota’s Largest Seller of Companies.
That’s one reason we have sold so many accounting practices over the last few years, and the growing number of firms we have listed today.
Our accounting practice listings include companies of all sizes: firms with asking prices exceeding $3.5 million to smaller firms operated from a home office.
One of the key factors in determining the value of an accounting business in the future, will be the application of new technologies, primarily AI. So, here’s an interesting snapshot of how business owners view the integration of AI into consulting businesses operations.
The Thompson Reuters Institute’s 2025 Generative AI in Professional Services Report stated that 89% of surveyed tax firms believed that AI can be applied to industry work.
The top five reasons respondents across all industries surveyed who said they were excited about how AI could be utilized are:
- Assisting in time-savings and streamlining work processes,
- Expected increased productivity and efficiency,
- Bring new opportunities, innovation and growth,
- Provide useful tools and solutions, and,
- Be transformative for the industry and work in general.
According to the report, the reasons why respondents said they believe GenAI should be applied to work have largely not changed since the 2024 report. Professionals are largely looking to GenAI for the following:
- Assist with or automate routine and low-value tasks,
- Assist in time-savings or streamline work processes,
- Increased efficiency and productivity,
- Improve quality and accuracy of work, and
- Cost savings or cost reduction.
I found the following excerpt from the study to be particularly interesting insight. Quoting the report: “Professional services industries are not known for innovating quickly. To date, some legal and tax organizations still have conversations about whether to adopt cloud computing, despite most large businesses having that technology for more than a decade.”
Further, “That said, some organizations have mistaken inaction for caution. Wanting to fully vet GenAI technology before adoption is understandable; however, avoiding the conversation about whether GenAI would be a worthwhile addition is not. Particularly given that a majority of professionals said they believe that GenAI can and should be used in their daily work lives…”
In terms of tax firms, the actual implementation or intent to do so reports as follows: 21% are already using AI; 25% are planning to use the technology; 28% have it under consideration, and only 25% have no plans to utilize the technology right now.
Regardless of whether lack of serious consideration and a planful approach to new technologies is a matter of inaction, or caution, or being just plain busy, how you think about AI and whether you are planning to implement or expand its use can have an impact on the value of your company, and its marketability. Time invested in serious consideration will pay big dividends, regardless of the direction taken.
You’ll find a link to the Thompson Reuters Institute Report here.
Increasing Company Value.
In thinking about other ways to make your accounting business more valuable, I always like to recommend looking at the following list of value-drivers. Buyers pay premiums for accounting firms that feel low-risk and easy to integrate. Positive purchasing situations are enhanced with the following:
- Recurring Revenues: Services like bookkeeping, payroll, and advisory or consulting that reduces billing seasonality
- Client Diversity: Limited concentration of revenue with clients and a predictable record of retention
- Margin Quality: A consistent, defensible earnings history is just as important as client retention
- Staff Leverage: A firm with quality associates, capable managers and loyal client relationships
- Modern Workflow: Use of cloud platforms and automation are important, along with clean reporting of activities, revenues and costs
If you take the time to think through this list and would like to have a conversation about how these items can impact the value of your firm, let’s set up a call and discuss.
Sunbelt Business Advisors and True North Mergers and Acquisitions have guided more than fifty accounting practice owners through successful sales of their companies since 2020. There probably hasn’t been a better time than right now for you to take advantage of the experience and expertise that can be applied to your decision to either grow your practice or move on to the next chapter of your life – Grow or Go!
All it takes to get started is a quick phone call.
Matt Sobieski, CPA
Sunbelt Business Advisors Accounting Practice Specialist
612-964-8884
Business Owner's Blog
A blog full of practice advice, real stories, and actionable strategies that help you navigate the financial and emotional complexities of selling or scaling your business with confidence.
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