Acquiring an established CPA or accounting firm can be a rewarding way to enter or expand within the financial services industry. Accounting businesses often come with a loyal client base, recurring revenue, and stable operations, making them attractive acquisition targets. However, finding the right accounting firm to purchase requires careful planning, research, and strategic networking. In this article, we will walk you through the key steps for finding and acquiring CPA and accounting businesses, providing actionable insights for aspiring owners.
1. Define Your Acquisition Criteria
Before beginning your search, it’s essential to define your acquisition criteria. Ask yourself key questions about the type of firm you want to buy, such as:
- Size: What is the ideal size of the firm in terms of revenue, client base, and staff? Are you looking for a small local practice or a larger regional firm?
- Location: Do you want a firm located in a specific geographic area? Consider whether you’re willing to relocate or if you prefer to acquire a firm in your current location.
- Specialization: Does the firm need to specialize in certain industries, such as healthcare, real estate, or small business accounting? Or are you looking for a general practice?
- Client Mix: Consider the types of clients you want to work with. Do you prefer high-net-worth individuals, small businesses, or corporate clients?
By clarifying these criteria, you can narrow your search and focus on finding firms that align with your goals and capabilities.
2. Use Online Marketplaces and Listings
One of the most straightforward ways to start your search for a CPA or accounting business is by using online marketplaces and business-for-sale listing platforms. These platforms allow you to browse a wide range of businesses and filter your search based on your criteria. Popular websites for finding accounting firms for sale include:
- BizBuySell: A well-known platform that lists businesses for sale across a variety of industries, including accounting and CPA firms.
- Accounting Practice Exchange: Specializing in the sale of accounting and tax practices, this site allows you to search for firms based on location and size.
- BizQuest: Similar to BizBuySell, BizQuest lists a variety of businesses, including accounting practices, with search filters for location and price range.
These platforms offer detailed information about the firms available for purchase, including financials, asking price, and key business metrics. While these online listings are a great starting point, keep in mind that competition can be high, and many quality firms are sold through more discreet channels.
3. Work with a Business Broker Specializing in Accounting Firms
Partnering with a business broker who specializes in accounting and CPA firms can be highly beneficial, especially if you’re new to the acquisition process. Brokers have access to an extensive network of sellers and can help you find opportunities that may not be publicly listed. They also assist with negotiations, due diligence, and the overall transaction process, making the acquisition smoother and more efficient.
When choosing a broker, look for someone with specific experience in the accounting industry. They should have a deep understanding of the nuances of accounting firm valuations, client relationships, and the regulatory environment. A specialized broker can also help you navigate complex issues such as the transfer of client relationships and retaining key staff members.
4. Leverage Your Professional Network
Your professional network can be a valuable resource when searching for an accounting firm to purchase. Many accounting businesses change hands through private deals, often facilitated by industry connections and word-of-mouth referrals. Reach out to colleagues, industry peers, and professional associations to let them know you’re in the market for an acquisition. You may discover opportunities that aren’t listed publicly.
Consider joining local and national accounting associations, such as the American Institute of CPAs (AICPA) or your state CPA society. These organizations often host events and provide networking opportunities that can connect you with sellers looking to transition out of their businesses. Additionally, attending industry conferences and seminars can help you build relationships with firm owners who may be open to selling in the near future.
5. Direct Outreach to Accounting Firm Owners
Sometimes, the best opportunities are the ones you create yourself. If there’s a specific accounting firm or group of firms you’re interested in, consider reaching out directly to the owners. Many accounting firm owners, especially those nearing retirement, may be open to selling but haven’t actively listed their business for sale. A personalized letter, email, or phone call expressing your interest in acquiring their firm can open doors to private negotiations.
When approaching firm owners directly, it’s important to be professional, respectful, and clear about your intentions. Express your interest in continuing their legacy and ensuring a smooth transition for clients and staff. Building rapport with the owner is essential, as many sellers care deeply about finding a buyer who will uphold the reputation of their firm.
6. Consider Seller Financing or Other Creative Financing Options
Financing the acquisition of an accounting firm can be a significant hurdle, especially for first-time buyers. Seller financing is a popular option in the accounting industry, where the seller agrees to finance a portion of the purchase price over time. This can make the acquisition more affordable and demonstrates that the seller has confidence in the future success of the firm.
In addition to seller financing, explore other creative financing options such as Small Business Administration (SBA) loans, bank loans, or private investors. Consult with financial advisors and accountants to determine the best financing structure for your acquisition.
Finding the right CPA or accounting firm to purchase requires a combination of strategic planning, networking, and persistence. By defining your acquisition criteria, leveraging online resources, working with specialized brokers, and tapping into your professional network, you can increase your chances of finding a firm that aligns with your goals. Remember that acquiring an accounting business is not just about purchasing a revenue stream—it’s about building relationships, ensuring client satisfaction, and continuing the legacy of the firm. With careful planning and the right approach, you can successfully navigate the process and become a proud owner of a thriving accounting practice.