The M&A Shift Toward Adjusted EBITDA Margins
About this episode
This episode discusses the evolving M&A landscape for accounting firms, focusing on valuation metrics and the importance of culture alignment in deals.
Are you building a firm to last, or building it to sell? Whether you're a CPA starting a firm or a Managing Partner eyeing retirement, understanding the current M&A (Mergers & Acquisitions) landscape is critical for your largest wealth-generation tool: your practice. In this episode of Growing Your Firm, host Dave Cristella sits down with Doug Lewis, Managing Director at The Visionary Group, to pull back the curtain on how buyers are actually evaluating accounting and bookkeeping firms in 2026. From the impact of Private Equity (PE) to the "sticky revenue" of Client Accounting Services (CAS), Doug breaks down the metrics that determine your firm's valuation. In this episode, we discuss: 1. The Shift in Valuation: Why firms are moving away from gross revenue multiples and toward Adjusted EBITDA. 2. The CAS Premium: Why Client Accounting Services and outsourced bookkeeping are trading for higher multiples than traditional audit or tax. 3. The Talent Shortage & M&A: How the pipeline shortage is moving "Talent" to the #1 spot on buyer wishlists. 4. The "Layover Test": Why culture alignment is the first thing that kills a deal (and how to spot red flags early). 5. Internal…
People in this episode
Host: Dave Cristella
Guest: Doug Lewis
Topics covered
- Mergers & Acquisitions
- firm valuation
- Adjusted EBITDA
- Client Accounting Services
- talent shortage
- internal succession
Keywords
- M&A
- Adjusted EBITDA
- valuation
- Client Accounting Services
- talent shortage
- firm valuation
- culture alignment
Mentioned in this episode
Organizations: The Visionary Group, Private Equity, Client Accounting Services
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