Valuing Accounting Practices

by Robert F. Reilly and Robert P. Schweihs

Published by John Wiley & Sons in 1997

This book describes methods for estimating the value of accounting practices and individual ownership interests in accounting practices. The valuation methods described in this book are particularly applicable for purposes of: buying or selling a practice, structuring buy-sell agreements and partnership buy-in formulas, practice formation equity allocation and practice dissolution asset allocation, key person and other insurance coverage, estate planning, practice shareholder disputes, and marital dissolution appraisals of partnership interests. The theoretical concepts, practice applications, illustrative examples, and professional standards presented in this authoritative work are directly applicable to accounting practices—and generally applicable to legal, consulting, and similar professional practices. Published by John Wiley & Sons (currently out of print).

Table of Contents

1.       Reasons to Conduct an Accounting Practice Valuation

2.       Professional Standards for Accounting Practice Valuations

3.       Purpose and Objective of the Accounting Practice Appraisal

4.       Basic Accounting Practice Valuation Approaches

5.       Data Gathering and Due Diligence for an Accounting Practice Appraisal

6.       Income Approach

7.       Market Approach

8.       Asset-Based Approach

9.       Valuation of Fractional Business Interests

10.    Identification and Quantification of Valuation Discounts and Premiums

11.    Valuation Synthesis and Conclusion

12.    Accounting Practice Valuation Reporting Standards

13.    Example of an Accounting Practice Valuation

14.    Special Practice Valuation Topics

Appendix A            Accounting Practice Valuation Bibliography

Appendix B            General Valuation Bibliography

Appendix C           Relevant Revenue Rulings

Appendix D           Recent Court Case Developments Involving Accounting Practices

Appendix E            Uniform Standards of Professional Appraisal Practice Table of Contents

Appendix F            Business Valuation Standards of the American Society of Appraisers

Appendix G           Business Valuation Standards of the Institute of Business Appraisers

Appendix H           Business Valuation Standards of the National Association of Certified Valuation Analysts