How to get to adjusted cash flow

As briefly mentioned in our previous post about valuation, adjusted free cash flow can have a direct impact on what a buyer is willing to pay for your firm. As an accountant you are likely well aware of the standard practice of adding back officer compensation.  When it comes to small to medium size independent CPA firms this add back is often the primary adjustment made and provides a significant boost to the firm’s normal free cash number. 

Basics to valuing your independent accounting firm – Metrics to get you started

It is probably the first question that came to mind when you initially considered selling your firm – what is my practice worth?  At Platform Tax and Consulting we are experienced aquirors of small to medium size accounting firms and if there is one thing we have learned it is that no transaction is alike.