According to Value Builder research, companies in which the owner remains the center of the business are 20% less likely to receive an acquisition offer.
That does not mean they receive a lower offer. They are less likely to receive any offer at all.
A business that cannot operate without its owner may not look like a business to a potential buyer. It looks like a demanding job—and buyers generally do not pay a multiple for a job.
This is an important lesson for accounting firm owners. Being the person who closes every sale, answers every client question, reviews every return, and approves every decision can feel like a competitive advantage. In reality, that dependence may be limiting the firm’s growth, reducing its value, and preventing the owner from enjoying the independence they started the business to achieve.
When the Owner Becomes the Business
In many professional service firms, the owner is the star. Clients ask for the owner by name, employees turn to the owner for every important decision, and the owner personally maintains the firm’s most valuable relationships.
That model may work when the firm is small. As it grows, however, the owner can quickly become a bottleneck.
Work cannot move forward until the owner reviews it. Employees may be hesitant to solve problems independently. Clients learn to bypass the team and contact the owner directly. Even when the owner takes time away, the business continues demanding their attention.
The owner may have created a source of income, but they have not yet created a company that can function independently.
How Cameron Passmore Built a Different Model
Cameron Passmore built PWL Capital into a wealth management company with $8 billion under management and more than 100 employees. When the firm sold to OneDigital, its value did not depend solely on Cameron’s personal expertise or relationships. It came from the company he had built around him.
As Cameron puts it, “The system is the star.”
Wealth management is typically an advisor-dependent industry. The advisor owns the client relationship and becomes the face of the business. If that advisor leaves, clients may follow.
Cameron deliberately built the opposite model: one team serving one client base.
Clients belonged to the firm rather than individual advisors. When advisors joined PWL, they entered an established system instead of building separate books of business.
The firm standardized its investment philosophy and financial planning processes so clients could expect consistent service regardless of the advisor they worked with. Cameron also hired a president to professionalize operations, allowing advisors to concentrate on serving clients rather than managing the company.
Equity was distributed broadly across the organization, including to people working in compliance, operations, finance, and marketing. This encouraged employees throughout the firm to think and behave like owners.
PWL also invested in compliance systems, governance frameworks, and data infrastructure that many independent firms might have considered unnecessary.
Together, those choices produced a company that did not depend on one person—including Cameron.
Applying the Lesson to an Accounting Firm
Accounting firms face many of the same challenges. Clients may associate their relationship entirely with the owner, while processes exist only in that owner’s head.
To build a more independent firm, owners can begin by standardizing the way work is completed. That might include documenting:
- How new clients are evaluated and onboarded
- How bookkeeping, tax, and advisory engagements are delivered
- Who communicates with clients and when
- How work is reviewed and approved
- How deadlines and client requests are tracked
- How common problems are handled
- How the firm’s knowledge is shared among team members
The goal is not to remove personal service. It is to make excellent service repeatable.
A strong system should allow clients to receive a consistent experience regardless of which qualified team member serves them. It should also give employees enough direction and authority to make appropriate decisions without waiting for the owner.
These systems can make the firm easier to scale, create a better client experience, and give the owner more freedom. They can also make the practice more attractive to a future buyer because the firm’s revenue and relationships are less likely to disappear when the owner leaves.
Helping Clients Build More Valuable Businesses
This lesson also creates an opportunity for accountants and business advisors to help small business clients examine their own operations.
Financial reports may reveal whether a company is profitable, but they do not always show how dependent it is on the owner. That requires a broader conversation.
Ask what would happen if the owner stepped away for a month. Would employees know what to do? Would customers still receive the same level of service? Could someone else approve purchases, solve problems, and manage important relationships?
If the answer is no, the company may need clearer processes, stronger delegation, and better management systems.
An accountant who raises these questions is doing more than reporting historical results. They are helping the client create a company that is more scalable, transferable, and valuable.
The owner may always be an important part of the story. But if the business is going to reach its full potential, the system must become the star.
Universal Accounting Center helps accounting professionals develop the technical, advisory, and business-building skills needed to create firms that can grow beyond their founders. Call 435-344-2060 to meet with our team and take your next step toward building the premier accounting firm in your area—with these lessons in mind.
