Industries we serve
Professional & Business Services
Accounting and bookkeeping practices, insurance agencies, marketing and IT firms, staffing, and B2B service companies across the Madison market.
Overview
Selling in Professional & business services
Service firms are bought for their client relationships, and client relationships are the one asset that can walk out the door. Every element of a professional services sale — the transition plan, the announcement, the earnout if there is one — is built around retention.
These are also the businesses most likely to have a book of recurring revenue. Monthly bookkeeping, managed IT contracts, renewing insurance commissions, and retainer relationships all price better than project work, and buyers pay for the difference.
Valuation
How these businesses are valued
Practices with renewing revenue — bookkeeping, managed services, insurance books — are often valued on a multiple of recurring revenue as well as on earnings, and the two are cross-checked. Project-based firms are valued on recast earnings alone. Transition support from the owner is usually part of the structure, because clients need a handoff rather than an announcement.
What raises the number
- High recurring revenue with strong renewal history
- Credentialed staff who own the day-to-day relationships
- Diverse client base across industries
- Modern systems and documented delivery processes
What holds it back
- Clients loyal to the owner personally
- A handful of accounts making up most of revenue
- Undocumented pricing and inconsistent engagement terms
- Key staff without any retention arrangement
Ranges and drivers described here are general guidance, not an appraisal. A valuation consultation prices your specific business on its own recast financials.
Deal considerations
What comes up in these transactions
Client transition plan
Who calls which client, in what order, and with what message — planned before closing and executed in the first weeks after.
Deal structure
Retention-based earnouts or holdbacks are common in service deals. They are negotiable, and the measurement terms deserve as much attention as the headline price.
Licensing and credentials
Certain practices require a licensed principal. The buyer's credentials, or a licensed staff member's continued employment, must be confirmed early.
Non-competes and staff agreements
Existing employment and non-solicitation agreements are reviewed for enforceability so the buyer knows what protection actually carries over.
Available now
Professional & business services businesses for sale
Start with a confidential conversation
No cost, no obligation, and nothing leaves the room. Tell us where you are and we will tell you honestly what the next step looks like.