In-depth coverage of the valuation of accounting practices and ofpartial ownerships in those practices Fundamental concepts and approaches related to accounting practices * Illustrative income approach valuation methods * Illustrative market approach valuation methods * Illustrative asset-based approach valuation methods * Preparing the overall accounting practice valuation synthesis andconclusion * Identification and quantification of accounting practicevaluation discounts and premiums, and other special topics relatedto the valuation of partial ownership interests * Special topics related to the valuation of accounting practices * Reporting the results of the accounting practice appraisal This comprehensive guide covers every aspect of accounting firmvaluation, from determining the circumstances in which theprocedure should be undertaken to compliance with standards forreporting valuation results. It provides a solid conceptual andtheoretical foundation for the analysis and appraisal of accountingpractices along with numerous practical applications andillustrations. The main body of the book is divided into four sections. The firstsection addresses the planning stages of the valuation, includingmotivations for conducting an appraisal, its purpose and objective,professional valuation standards, selecting a valuation approach,and data gathering. In the second section, specific accountingpractice valuation methods are discussed and illustrated. Theseinclude market-based, income-based, and asset-based methods. Thissection also examines the process of determining the overall valueof the business. The third section of Valuing Accounting Practices focuses on thevaluation of fractional or partial interests in an accounting firm.A large part of this discussion centers on the identification andvaluation of discounts and premiums related to partial or minorityownership, with an emphasis on marketable versus nonmarketableinterest and discounts for lack of marketability. Topic
This book helps CPAs assess the value of their practices so they can make informed decisions about merging with, acquiring, or being acquired by other CPA firms or other types of business. It describes the valuation of accounting practices and of partial ownership interests in those practices.
