What the Influx of Private Equity in the Accounting Industry Means for Your CPA Firm

*Why has there been such an increase in private equity buyers acquiring accounting firms and what does this mean for the industry?*

In this episode of the Accountant’s Flight Plan Podcast Brannon dives deeper into the subject and what it means for your firm with accounting practice intermediary, Laurens Ball and California market leader, Morry Brown. Laurens has been brokering deals on our team for five years now and Morry, a member of our sales team, has a background in outsourced CFO services and global investment banking with Goldman Sachs and Citigroup. In this episode, you will learn why private equity is here and how it could benefit the profession in the long run.

Private equity has entered the accounting world primarily because they see the value that CPAs provide. With the staffing shortage in full swing, accounting and bookkeeping services are in high demand. This means that accountants have more pricing power than they realize. With the opportunity to raise prices and increase revenue, firm owners could increase topline revenue and cash flow creating more value in their firms.

Buyers with private equity backing see this potential and want to capitalize on it. With the knowledge and experience to implement or streamline systems while consolidating multiple CPA firms, private equity buyers could optimize firms effectively. While this potential is exciting and comes with the opportunity for selling at progressively higher multiples, it is important for sellers to keep their vision top of mind.

Whether selling to a private equity firm or not, finding the right fit buyer is key. Knowing what the buyer’s vision is and how they hope to grow the firm after close is crucial to knowing whether or not the deal will be successful. Cluing into the non-monetary elements of an offer is vital to knowing whether or not it is the right one for you and your employees.

Are you considering a private equity buyer or looking to learn more about how the current market increases your pricing power as a firm owner? Read our Private Equity Market Report to dive deeper into this topic and learn what questions you should ask when considering these types of deals: Private Equity M&A in the Accounting Industry [https://poegroupadvisors.com/cpa-private-equity/]

*Time Stamps*
1:55 - Overview of where we are with Private Equity in the Accounting Industry
3:36 - How do you know if a PE buyer is right for you?
8:22 - Private equity’s impact on pricing valuation
10:50 - Will private equity increase top-line revenue?
14:15 - Knowing the buyer’s vision can indicate success
31:59 - Market knowledge & the non-monetary elements of an offer
35:00 - Wrap up and - book recommendations
Brannon - To Be Loved - by Berry Gordy [https://www.amazon.com/Be-Loved-Memories-Motown-Autobiography/dp/044651523X]
Morry - Life - Keith Richards [https://www.amazon.com/Life-Keith-Richards/dp/031603441X]
Laurens - Shoe Dog - by Phil Knight [https://www.amazon.com/Shoe-Dog-Memoir-Creator-Nike/dp/1501135910]

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Poe Group Advisors: Helping accountants buy, build, and sell exceptional firms.

Poe Group Advisors is the premier accounting practice intermediary firm in the industry.
With over 20 years of experience in the accounting industry Brannon Poe’s work helping certified public accountants in brokerage and acquisitions has made Poe Group Advisors one of the premier consulting firms in the business.

For those looking to improve their firm for long term growth, our expertise can help maximize cash flow, increasing the bottom line and making your firm the best and most profitable that it can be. We offer many resources including Accounting Practice Academy: a community-based, 8-week workshop designed by Brannon Poe for accounting firm owners who want to increase profitability and reduce owner hours. As well as a TOP 50 featured accounting blog, the Accountant’s Flight Plan podcast and books on the issues that matter most: _Prepare Your CPA Firm for a Sale_ , _The Unplugged Vacation_ , and _Scaling Your Cloud Accounting Practice_ to name a few.

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