Private equity
Post LinkedIn lead magnet · Private equity
Buying an accounting firm? If you only look at customers, you are missing the real risk. Private equity does not just look at customers, they also look at employees. When I evaluate an accounting firm acquisition for private equity, I analyze the team. I look at: Salary Billable hours Utilization rate Bill rate Revenue per employee This tells you who is actually driving margin, who is mispriced relative to market, and who is not pulling their weight. PE firms do this obsessively because labor efficiency is where returns are won or lost. Overpaid teams, low utilization, or weak revenue per head will show up immediately in EBITDA and post-close performance. This also is one of the easiest ways PE firms can increase profit margins and therefore Enterprise Value. I also roll this up by level so I can quickly see revenue per level, salary per level, and utilization rate. It gives a great picture of who you are buying and who you want to retain after close. If you want the worksheet I use to analyze payroll and productivity when buying a firm, comment “payroll” and I will send it to you. #PrivateEquity #AccountingFirms #MergersAndAcquisitions #DueDiligence #ProfessionalServices #SearchFund
Mécanisme lead magnet
If you want the worksheet I use to analyze payroll and productivity when buying a firm, comment “payroll” and I will send it to you.
