Canada's CPA acquisition market is an interesting place right now. There are plenty of buyers, more owners starting to think about succession and no shortage of opinions about what an accounting practice is worth.
But here's what keeps coming up in our conversations: buyers and sellers often have very different ideas about value.
For an owner who has spent 25 years building a firm, that value reflects decades of client relationships, long tax seasons, loyal employees and a business they've poured much of their life into.
For a buyer, the conversation often starts somewhere else entirely. What does the firm earn? How much of that revenue will remain after the owner leaves? And what will it take to run the business without them?
Neither perspective is unreasonable.
They're just starting from very different places.
Everyone Has a Multiple in Mind
Across the Canadian market, we're seeing a surprisingly wide range of valuation expectations.
Some private equity buyers we're speaking with are targeting acquisitions around 3–5× EBITDA. Meanwhile, certain sell-side advisors are seeking 1.2–1.3× annual revenue, particularly for bookkeeping businesses.
These aren't universal market benchmarks, and revenue and EBITDA multiples aren't directly comparable. But they illustrate just how differently transactions are being approached.
Even the way a firm is valued can change depending on its size, profitability and the type of buyer sitting across the table.
The CPA British Columbia practice valuation guidance discusses both gross revenue and normalized EBITDA as important valuation measures. Neither tells the whole story on its own.
A practice can generate impressive annual billings while leaving very little profit after paying its people and operating expenses.
Another firm may have lower revenue but better margins, an experienced management team and systems that don't depend on the owner being available every hour of the day.
On paper, the first firm might look bigger. To a buyer, the second could be the more attractive business.
It's one of the reasons we've previously explored why founder dependence can become such a significant valuation risk.
The Asking Price Is Only Half the Conversation
Something else we're noticing is that buyers and sellers aren't always disagreeing about the valuation itself.
Sometimes they're disagreeing about what happens next.
A seller approaching retirement may want a clean exit, most of the proceeds upfront and the freedom to finally enjoy life outside the firm.
The buyer might be thinking about a three-year transition, deferred payments, an earn-out or keeping the seller involved with an equity interest.
It's easy to understand both sides.
The seller has spent decades building the business and wants to realize its value. The buyer is committing capital to something that needs to keep working after ownership changes hands.
And when many of the client relationships still sit with the founder, that transition becomes especially important.
A $2 million headline offer with payments spread over several years can feel very different from a $2 million offer paid largely at closing.
Same headline value. Very different experience for the seller.
This is where some acquisition conversations become more complicated than either party expected.
There's More Than One Canadian CPA Market
What's fascinating is how much these conversations change as we move across the country.
In British Columbia, particularly Vancouver, we're seeing higher valuation expectations, often influenced by billing rates and revenue per client. Across the broader Lower Mainland and Fraser Valley, approximately 1× annual revenue remains a common reference point for smaller practices in our market conversations.
Ontario has a different dynamic. Buyer interest is strong, but many owners aren't necessarily ready to sell. That creates a competitive environment where timing and the credibility of a buyer can matter as much as the initial valuation.
Alberta presents another interesting contrast. We're speaking with established owners considering retirement and younger, growth-focused partners who are actively looking to acquire other practices.
It's the same profession but very different motivations.
And that's what makes the Canadian CPA acquisition market so interesting. Behind every valuation is a business, an owner and a different idea of what the future should look like.
A Market That Is Still Finding Its Next Chapter
Over the past year, we've spoken with hundreds of CPA firm owners across Canada, including many who had never previously been approached about selling.
What stands out isn't that everyone suddenly wants to exit.
It's that more owners are beginning to consider what their options might look like.
Some want to retire. Some want to grow through acquisitions. Others would happily keep working with clients for another decade if they could step away from the responsibility of running everything themselves.
And some are simply curious about what the business they've spent their lives building could be worth.
We've written before about the questions CPA firm owners ask before they're ready to sell. Often, those early conversations have very little to do with negotiating a price.
They're about understanding the possibilities.
The Canadian CPA market is changing, but it isn't moving in one direction. There will be firms that sell, firms that merge, firms that acquire and plenty of owners who decide independence is still the right answer.
The real opportunity is having enough information to make that choice on your own terms.
At RSSL Mergers, we're having these conversations with CPA firm owners and acquisition buyers across Canada every day. If you're curious about what your firm might be worth, or simply want to explore what could come next, start a confidential conversation with us. No decision to sell required.
