Taking over an accounting or fiduciary firm in Switzerland: how to evaluate the client base?
Introduction
Taking over an accounting or fiduciary firm in Switzerland represents an attractive opportunity for professionals in the sector: established clientele, recurring revenues, and often a solid local positioning. But unlike other types of businesses, the value of a firm rests essentially on an intangible asset: its client portfolio.
This portfolio generally represents between 70% and 80% of the total value of the business. Its quality directly determines future profitability, revenue stability and the risk of the takeover. Yet, not all portfolios are equal. A firm with 200 clients and 500,000 CHF turnover can be worth much more, or much less, than another displaying the same figures.
The difference? The recurrence of mandates, sectoral diversification, transferability of relationships, and the real profitability of each client. Before committing to a fiduciary firm takeover, you must therefore master the evaluation criteria specific to this sector.
This guide presents the key indicators for analysing a client portfolio, valuation methods adapted to the Swiss fiduciary sector, and points of vigilance not to be overlooked. You will also find a practical checklist to structure your due diligence.
📌 Summary (TL;DR)
The client portfolio of a fiduciary firm represents 70 to 80% of its value. To evaluate it correctly, analyse mandate recurrence, client concentration, portfolio quality and billing history. Valuation methods include fee multiples (1.5 to 3x), adjusted EBITDA, and the per-mandate approach. Imperatively verify the transferability of client relationships, regulatory compliance and the state of systems before committing.
📚 Table of contents
Why the client base is the main asset of a fiduciary firm
In an accounting or fiduciary firm, the client portfolio represents 70 to 90% of the total value. Unlike other sectors, tangible assets (offices, equipment) carry little weight.
The real value rests on the recurrence of mandates and the relationship of trust established with each client. This specificity makes the evaluation of the client base absolutely central during a fiduciary firm takeover.
A stable and diversified portfolio guarantees predictable revenues. This is what justifies the acquisition price and secures your investment.
Essential criteria for evaluating the client portfolio
Before taking over an accounting firm, you must analyse in depth the composition and quality of the portfolio. Several key indicators allow you to evaluate its solidity and sustainability.
These criteria help you identify potential risks and estimate the real value of the client base. A rigorous analysis avoids unpleasant surprises after the takeover.
Here are the four essential dimensions to examine systematically.
Recurrence and predictability of mandates
Prioritise recurring mandates: annual accounting, tax declarations, payroll management. These services generate predictable revenues and naturally build client loyalty.
Analyse the historical retention rate and average seniority of relationships. A firm with 85% of clients present for more than 3 years offers a solid base.
One-off mandates (company formations, exceptional audits) add volume but do not guarantee stability. As with a painting business, recurrence is a major valuation criterion.
Concentration and diversification
Calculate the share of turnover generated by the 5 largest clients. If a single client represents more than 15-20% of turnover, the dependency risk is high.
Verify sectoral diversification: a balanced portfolio between SMEs, self-employed individuals and associations limits exposure to sectoral crises.
The total number of active mandates also counts. A firm with 80 diversified clients is more resilient than a firm with 30 large concentrated files.
Quality and profile of clients
Identify the types of mandates: structured SMEs, self-employed individuals, associations, startups. Each profile implies a different level of complexity and fees.
Clients with high development potential (growing companies, new entrepreneurs) increase the value of the portfolio. Conversely, identify at-risk clients: disputes, recurring non-payments, declining sectors.
The sectors of activity represented also reveal the firm's positioning and specific expertise.
Billing history and profitability
Request the evolution of turnover per client over the last 3 years. Regular growth indicates a healthy relationship and satisfied clients.
Analyse the average fees per client and per type of service. Identify unprofitable clients who consume too much time for their billing.
The rate of non-payments reveals the quality of management and the financial health of the client base. A rate above 5% should be a warning sign.
Valuation methods specific to the fiduciary sector
The Swiss fiduciary valuation is based on methods adapted to the particularities of the sector. Unlike industrial companies, the evaluation focuses on recurring revenue streams and portfolio quality.
Three main approaches coexist, often combined to refine the estimate. Each has its advantages depending on the structure and maturity of the firm.
Here are the most commonly used methods in Switzerland for valuing an accounting or fiduciary firm.
Fee multiple method
This is the most common approach: the price is between 0.8 and 1.5 times the annual recurring turnover. The multiple depends on the quality of the fiduciary client portfolio: loyalty, diversification, profitability.
A firm with 90% recurring clients and a net margin of 25% will be valued at 1.3-1.5x. A concentrated portfolio or one with high turnover will drop to 0.8-1x.
Concrete examples: a firm generating 300,000 CHF in recurring fees can sell for between 240,000 and 450,000 CHF depending on its quality.
To refine your estimate, use the Leez valuation tool.
Profitability method (EBITDA)
For more structured firms, valuation is based on 3 to 5 times normalised EBITDA. This method suits structures with several employees and an established organisation.
Adjustments are essential: reintegrate the seller's salary, eliminate personal expenses, normalise exceptional costs. EBITDA must reflect the real transferable profitability.
A firm with 80,000 CHF normalised EBITDA will be valued between 240,000 and 400,000 CHF depending on its stability and prospects.
Per-client or per-mandate approach
This method values each mandate individually according to its complexity, recurrence and fee level. It is particularly useful for heterogeneous portfolios.
Establish a price grid by type of service: SME accounting (3,000-8,000 CHF), self-employed tax declarations (800-2,000 CHF), payroll management (1,500-4,000 CHF per company).
This granular approach allows you to precisely identify high-value mandates and those at risk, for more refined negotiation.
Specific points of vigilance for taking over a fiduciary firm
Beyond valuation, certain risks specific to the fiduciary sector deserve particular attention. These elements can significantly impact the success of the takeover.
Anticipating these issues allows you to negotiate the right contractual clauses and plan a successful transition. Three dimensions are critical.
Transferability of client relationships
The major challenge: clients are often attached to the person of the seller, not to the firm. A transition period of 6 to 12 months is strongly recommended to facilitate the transfer of trust.
Provide for earn-out clauses based on actual retention: staggered payment according to the rate of clients retained after 12-24 months. The average attrition rate is between 10 and 20% post-takeover.
Organise meetings with key clients before signing. As with a medical practice, the personal relationship is decisive.
Regulatory compliance and authorisations
Verify that you have the necessary professional accreditations: qualified accountant, certified tax expert according to the services offered. Certain mandates require specific qualifications.
AML (Anti-Money Laundering Act) compliance is mandatory for fiduciary firms. Audit the procedures in place and affiliation to a self-regulatory organisation.
Check professional liability insurance and its continuity. Also verify the continuing education obligations imposed by professional associations. Consult our guide on the regulatory aspects of a takeover.
State of the information system and processes
Audit the IT tools used: accounting software (licences, versions), document management systems, billing tools. Verify licence ownership and their transferability.
Request documentation of internal processes: processing workflows, quality control procedures, document templates. A well-documented firm facilitates the takeover.
Ensure you have full access to client data and histories. Estimate potential costs for upgrading or migrating to your own systems.
Practical checklist for evaluating a fiduciary firm
Documents to request:
- Anonymised client list with turnover per client over 3 years
- Breakdown of recurring vs one-off mandates
- Standard contracts and general conditions
- Billing history and rate of non-payments
- Organisation chart and CVs of key employees
Questions to ask the seller:
- Reason for sale and timing
- Client retention rate over 5 years
- Ongoing disputes or problematic clients
- Proposed transition period
Analyses to carry out:
- Financial and accounting due diligence
- Meeting with key clients (if possible)
- Evaluation of premises and lease conditions
- Audit of IT tools and licences
For personalised support, explore the Leez expert network: fiduciary firms, lawyers and M&A advisers specialising in takeovers.
Taking over an accounting or fiduciary firm in Switzerland rests above all on a rigorous evaluation of the client base. This portfolio represents the main asset of your investment. Analyse the recurrence of mandates, portfolio diversification, quality of client relationships and billing history to measure the sustainability of the activity.
Valuation methods specific to the sector, fee multiples, adjusted EBITDA or per-mandate approach, give you an objective analytical framework. But figures are not enough: verify the real transferability of relationships, regulatory compliance and the state of information systems.
Are you considering taking over a fiduciary firm? Discover the firms available on Leez and access detailed listings with verified financial data. Need support for valuation or legal aspects? Our network of specialised experts is at your disposal to secure your takeover project.
