If the market sees your accounting services as interchangeable, your firm may be worth less than you think.
Acquirers often argue that without a competitive moat, commoditized firms are sitting ducks for a price war. Margins get squeezed. Valuations drop.
After completing the Value Builder Score Report, more than 80,000 owners have received an estimate of their company’s value. That data—one of the largest private databases of its kind—offers a clear view into what drives acquisition offers.
On average, a small business sells for 3.9 times pre-tax profit. But when a company has a monopoly on what it sells—because it has clearly differentiated its product or service—that multiple jumps by 25%. These businesses are also 40% more likely to get an acquisition offer in the first place.
That premium is especially valuable if what you offer looks like a commodity. Just ask Rich Galgano.
Turning Wire Into a Brand
Galgano built Windy City Wire in one of the most commoditized categories imaginable: low-voltage wire. His product was the same copper everyone else sold. There was nothing proprietary about the material itself. But instead of competing on price, Galgano focused on solving small, nagging problems for his customers.
His first breakthrough was color-coded insulation. While high-voltage wire had long been color-coded for safety and identification, no one had applied the same logic to low-voltage wire—until Galgano. By introducing color-coding, he made installations faster, easier, and less error-prone for contractors and electricians.
The wire itself hadn’t changed, but the experience of using it had. Suddenly, Galgano’s product saved time and reduced costly mistakes. Customers stayed loyal, and his margins held strong.
The Moat Is in the Delivery
Galgano’s second innovation came in the form of a box. Traditional wire spools were bulky, inefficient, and prone to tangling. He developed a packaging system that made it easier to pull wire cleanly and consistently on job sites—and then patented it.
The wire was still copper. But now it was delivered in a way that solved customer headaches. That packaging became a moat competitors couldn’t cross.
Over time, Windy City Wire became the preferred supplier for major contractors and Fortune 500 companies—not because the wire itself was unique, but because the experience of buying and using it was better.
When Galgano sold the business, it had grown EBITDA for 32 consecutive years and sold for just under $500 million.
The Lesson for Accounting Firms
Most accounting firms face the same challenge: on the surface, bookkeeping, tax preparation, and payroll can look like commodities. To a prospective buyer—or even to a prospective client—one firm can feel interchangeable with the next.
But like Galgano, you can differentiate your firm without reinventing the service itself. The key is in the delivery and experience. For example:
- Develop a specialized reporting dashboard for niche clients like dentists, contractors, or e-commerce sellers.
- Offer subscription-based services with unlimited advisory calls, so clients see you as a partner rather than a vendor.
- Package your services in a way that reduces friction—automated onboarding, seamless document sharing, or guaranteed turnaround times.
- Patent or trademark unique processes, tools, or branded client systems that reinforce your value.
It’s not about changing the tax code or reinventing bookkeeping—it’s about creating a client experience that others can’t easily copy.
Building Differentiation with Universal Accounting Center
If your accounting firm risks looking like “just another provider,” Universal Accounting Center (UAC) can help you stand out. Their certification courses and training programs give you the tools to package and deliver services in a way that clients value more—and competitors can’t easily replicate.
From building specialized advisory skills to streamlining your tech stack with UAC’s Virtual Trade Show & Toolbox, you’ll gain strategies to eliminate client friction, boost margins, and create your own competitive moat.
Conclusion & Call to Action
Rich Galgano didn’t reinvent wire—he reimagined how it was delivered. Accounting firms can do the same by focusing on client experience, packaging, and delivery. That’s how you transform a commodity service into a premium business.
👉 To learn how to specialize and differentiate your firm, contact Universal Accounting Center today at 435-344-2060. Their team will show you how to build a practice that clients prefer, acquirers value, and competitors can’t easily copy.
