Another snapshot from BVR’s soon-to-be-released 2007 Business Valuation Firm Economics & Best Practices Survey: Less than an eighth of CPA revenues come from business appraisals and related work (see table below). The larger CPA firms, often with a single partner running the business valuation “department,” show smaller and smaller percentages of total revenue from BV activities—and this may be a continuing trend, given that many public-firm auditors are growing more wary of performing fair value appraisals.
Per Cent of total billings received from business valuation activities |
|
Small BV firms (<$200k in total billings) |
87.3% |
Mid-size BV firms ($200k-$1MM in total billings) |
88.2% |
Large BV firms (>$1MM in total billings) |
73.2% |
Small CPA firm (<$1MM in total billings) % of revenue from BV activities |
16.5% |
Mid-size CPA firms ($1MM-5MM in total billings) |
14.3% |
Large CPA firms (>$5MM in total billings) |
5.0% |
Other/M&A/Consulting/Investment |
21.0% |
This is just a small slice of the data that will be available in BVR’s full report; to pre-order your copy, click here.