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A/R Aging Report Guide1031 Exchange GuideLOC GuideSBA 7(a) GuideSBA 504 GuideSection 179 GuideSelling a Business
Setting an Asking PriceUsing a Business BrokerSelling a Business During DivorceSelling a Failing BusinessTransferring Intellectual PropertyPreparing an Online Business for SalePreparing for Sale, Two Years OutSelling a Business QuicklyWriting a Selling MemorandumSelling a Business Step by StepSelling a Business With DebtChanges Worth Making Before SellingCompliance work transfers. Advisory partly. Project work barely at all — it was bought from a person, and the person is leaving.
The applied multiple is 0.95× against 1.25× for a compliance-weighted book. On $2.4M of revenue that is $720,000 decided entirely by mix.
Read from the calculator on its shipped example. Lines marked (derived) are the difference between two of its figures rather than one it displays directly.
Every figure above is computed from inputs you control. Change one and the whole model moves.
Same revenue, different book. Mix is the largest single determinant of the multiple in this sector.
Coverage is computed on comp-normalized earnings, and stressed at a quarter of the book walking.
These charts are the calculator’s own, drawn from the example it ships with. Put your figures in and they redraw.
Pricing the whole book at one multiple. Compliance is the part a buyer can rely on; project work is a person's relationships. And the coverage test here is not a market crash — it is a quarter of the book failing to transfer, which is the scenario a lender actually models for a professional practice.
Rules of thumb that circulate because they are roughly right. The calculator labels them as such and asks you to record your own source.
The tool applies all of this to your numbers, and tells you where it disagrees with itself.
On a multiple of revenue weighted by service type. Compliance work transfers; project work barely does. The worked example applies 0.95× against 1.25× for a compliance-weighted book — $720,000 on $2.4M of revenue decided entirely by mix.
There is no single number, which is the point. The tool splits revenue by service type and applies a multiple to each, because one multiple across the whole book misprices it in one direction or the other.
It is the gap between what you billed and what you booked. A firm with poor realization is discounting without having decided to, and a buyer recalculates it before anything else.
Compliance clients mostly stay, and they stay with the staff who do the work more reliably than with the partner who sold it. The tool stresses coverage against a quarter of the book not transferring.
The answers above use the worked example. Your practice will give different ones.
There is almost no collateral in an accounting practice. A lender is underwriting whether clients stay, which makes the structure carry more weight here than the rate does.
Possible, and the lender will look hard at transition. Expect questions about who owns the relationships before they discuss the amount.
Bank debt, seller note and equity against coverage. With no hard assets, the stack is the argument.
Dominant in this sector. Retention-linked paper aligns the seller with the transfer, which is the only real security a buyer has.
Every 20% owner files one. With no collateral behind the loan, the guarantor is most of the credit decision.
For a small book or a partial buy-in where speed matters more than basis points. Capped at $500,000.
Not all revenue transfers, and the mix decides the multiple. Better to know which parts of the book carry value before busy season eats the year.
No credit card required now. As long as your details are in the system, we send the discount access details when the software opens.
And the financing calculators are free and working today. SBA 7(a), 504, CAPLines, Form 413, equipment and seller paper — your account opens all of them the moment you register, months before the valuation software ships.
The whole analysis exports as one PDF, generated server-side — every tab, the five-year history, the normalization and the working behind each figure. Not a screenshot of the tab you happen to be on.
It carries the business name, the period, who prepared it and for whom, so a lender or a buyer can act on it without asking who produced the figures.
One email when the software opens, and nothing else. Your details are not sold or passed on.
Figures are the calculator’s worked example, read from the tool itself. Thresholds described as conventions are not market observations. Saving is optional and off by default; saved work is encrypted at rest with AES-256. This tool produces estimates on figures you enter, not a valuation, appraisal, or legal, tax or accounting advice. ExitAdviser is operated by Simplifying Calculation LLC, a Delaware limited liability company.