Industry briefing · Professional services
What professional services firms sell for, and why
What agencies, consultancies, and advisory firms sell for, and how to sell yours for more.
A professional services firm sells its people and its client list, and buyers discount both when they belong to the founder. The firms that command a premium have moved the relationships, the delivery, and the selling to a bench the buyer keeps.
At a glance
- Published median
- 2.04xon owner earnings
- Typical range at sale
- 4x to 7xon EBITDA
- Who buys
- Larger firms, PE-backed platforms, holding companies
- Weighed first
- CcCustomer Concentration
What professional services firms sell for
Every figure is a multiple of something. The measure sits beside each one, because multiples of owner earnings, EBITDA, and revenue do not compare with each other.
| Multiple | On | Source |
|---|---|---|
| 2.04x | Owner earnings | Owner earnings multiple, accounting and tax practicesBizBuySell, Accounting & Tax Practice Business Valuation Multiples & Financial Benchmarks (businesses sold 2021–2025) |
| 4x to 7x | EBITDA | Typical range at saleFNDRS industry playbook |
| 12.8x against 5.6x | EBITDA | Agencies: size sets priceCapstone Partners, 2023 |
| 11.9x | EBITDA | PE-backed firms near twelveLincoln International, 2026 |
- Owner earnings
- Profit before the owner's own pay and perks, interest, taxes, and depreciation. Small, owner-run businesses are priced on it.
- EBITDA
- Earnings before interest, taxes, depreciation, and amortization, with the owner paid like a hired manager. Larger companies are priced on it.
Who buys professional services firms
- Larger firms
- PE-backed platforms
- holding companies
Private equity firms and their platforms make close to half of professional services deals, mostly as add-ons. Strategic buyers, often private firms buying rivals, still make the majority.
- Sponsors make nearly half. In the year to March 2026, PE firms and their portfolio companies made 48 percent of professional services deals, their volume up 32 percent; strategic buyers made 52 percent. Lincoln International, 2026
- Accounting platforms buy regionals. PE purchases of accounting firms rose 73.5 percent in 2024; Hellman & Friedman-backed Baker Tilly bought Connecticut's CironeFriedberg in 2025, its fifth add-on since 2024. Capstone Partners, 2024
- Agency buyers: mostly strategics. Strategic buyers made 68.6 percent of marketing services deals in 2026 to date, led by private firms buying rivals; PE deals grew faster, up 17.4 percent. Capstone Partners, 2026
What diligence reads first
There is no inventory, no plant, and no patent. What a buyer is paying for is the probability that the revenue shows up next year without the founder in the room.
Client concentration is the first cut. Three clients over half of revenue is a structural discount before any other number is read.
Retainers and multi-year engagements are valued like recurring revenue. Project work is valued like a pipeline.
Utilisation and realised rates tell a buyer whether the margin is real or borrowed from unpaid overtime.
Partners and senior staff need retention terms before a letter of intent, not after.
Earn-outs are common in services. The cleaner the numbers, the smaller the part of the price that waits on them.
Buyers pay more for a spread-out client list, strong margins, and real expertise; accounting buyers prize realisation rates. AI adds a question: could the client do the work in house.
- Client spread drives price. Capstone credits limited customer concentration, strong margins, and subject-matter expertise with the higher multiples paid for marketing services firms. Capstone Partners, 2023
- Realisation rates come first. PE buyers of accounting firms often look first for high realisation rates and sound operating numbers, distinctive services, and room to cross-sell to existing clients. Capstone Partners, 2025
- Generic work is exposed. Lincoln expects AI to push clients to bring generic research and analysis in house; work needing independence, regulation, liability, or specialist judgment should hold up best. Lincoln International, 2026
The element buyers weigh first
Customer Concentration
Revenue share held by the top customers. Scored as control: higher is safer.
What it measures. Revenue share of the largest customer and of the top five, and the contract terms protecting that revenue.
Today and prepared, side by side
The difference is preparation, and in professional services it shows up in a handful of measurable places. This is the shape of it, drafted for the industry and read against what buyers actually pay.
| Today | Prepared | |
|---|---|---|
| Multiple on EBITDA | 3.8x | 6.2x |
| Revenue from the top three clients | 48% | 20% |
| Revenue on retainer | 25% | 60% |
| Partners who sell without the founder | 1 | 4 |
Illustrative figures for professional services. Your numbers come from the calculator.
What founders say
Every line is quoted word for word from a recording. Each founder is described by role and state.
“You can make an uninformed decision over and over for 27 years and not even realize that you're making that uninformed decision because nobody is there to tell you.”
“We didn't have probably any really SOPs when we first started, and now we've gotten a whole bunch in place.”
“We've never been in a program like Founders that's given us as much value and as quick a time.”
Know what your professional services firm is worth before a buyer tells you
Fifteen minutes for the exit score, then a conversation with the deal team.