Advisory | September 3, 2026
CPA Firms Score Weakest on Niche, the Very Trait a Private-Equity Buyer Pays a Premium For
A firm that owns a defensible niche gets paid a higher multiple than a generalist doing similar numbers.
A preliminary field read of CPA firms on the ten-part TRUE FirmWorth framework finds niche ownership ranking last of ten, in a market where a defensible niche earns the higher multiple. The firms averaged 56 out of 100.
The last three years of PE and M&A commentary in accounting have one clear point of agreement. A firm that owns a defensible niche gets paid a higher multiple than a generalist doing similar numbers. The field data now points to an awkward twist. Of the firms that completed the scorecard, niche ownership ranked dead last of ten, below every other trait a diligence team checks before it names a price.
Preliminary field data: CPA firms scored on the Accountaneur TRUE FirmWorth framework.
Higher is stronger; dashed line marks the group average.
The PE money shows up in the EBITDA multiple. TRUE FirmWorth™ framework estimates firms scoring in the seventies can be valued at 7.5 to 9 times EBITDA. The rest would be at 4.5 to 6. Similar firm sizes with similar numbers can be a full band of multiples apart. That mirrors how buyers price the whole market. A firm that runs as a transferable business gets paid up, and one that leans on its owner or sells commodity compliance gets marked down.
“The market figured out years ago that niche is worth paying for,” said Hitendra R. Patil, founder of Accountaneur and author of PE Deal Ready. “A buyer reads a firm that owns a lane as a business with pricing power. A generalist firm reads as a job someone bought. Such generalist firms chase growth because they can feel it. Niche gets ignored because it costs nothing to ignore, until a buyer puts a price on the firm.”
The firms that completed the scorecard self-scored across the same ten dimensions, spanning under $2M to $115M in revenue. As it is a preliminary field look, it is early and deliberately small, and not a census of the profession. Updated numbers and findings to follow as responses come in.
Any firm can take the TRUE FirmWorth scorecard for free in a few minutes and see its score across all ten dimensions, plus the firm-specific weakness that can cost it the most in a PE diligence room, at https://www.accountaneur.com/pe-in-accounting/pe-readiness-scorecard. The full methodology and the eighteen-month moves that can lift a firm’s score, and hence value, before a sale are in the PE Deal Ready book, available at https://www.accountaneur.com/pe-deal-ready-book.
==
About Accountaneur. Accountaneur Advisory, founded by Hitendra R. Patil, advises CPA firm owners on CAS/advisory growth and private-equity readiness.
Sign in to get access to this free resource, and all of our whitepapers and reports.
Download this content today!
Register Now Already registered? Click here to Log In
Technology September 3, 2026
Eftsure Acquires Relish for Enterprise Payments from Onboarding to Payment
The acquisition comes as businesses are grappling with fragmented systems and ongoing cybercrime risks.
Firm Management September 3, 2026
How to Help a Client When Their Email Has Been Taken Over
When a client's mailbox is already sending junk, password and MFA are not the finish line.
Advisory September 3, 2026
CRI Names Former PCAOB Chief of Firm Inspections As Director of SEC Services
Timothy Sikes is expected to play a key role in strengthening CRI's capabilities to serve publicly traded clients.
Software September 3, 2026
Why Client Software Costs Don’t Fall When Headcount Does—and What Advisors Should Review
A workforce reduction changes software demand immediately. Contract economics usually change only when the buyer acts before the next commercial deadline.