How to Buy an Accounting (Professional Services) Business

If you’ve ever thought about owning a business that generates steady, predictable cash flow year after year, no matter what’s happening in the economy, you might want to look at accounting and professional services firms. Unlike restaurants or retail, people rarely “try out” a new accountant for fun. They build trust, stick around, and refer others. That stickiness makes accounting firms one of the most stable acquisition opportunities you’ll find.

But, and there’s always a “but”, buying an accounting business isn’t the same as buying a laundromat or self-storage facility. You’re not just acquiring revenue streams, you’re acquiring relationships and, in many cases, licenses and regulations. If you mishandle the transition, clients won’t politely write you a thank-you note and continue on their merry way. They’ll walk.

That’s why, on September 24th at The Gathering Spot in Atlanta, we’re dedicating an entire session of our Million Dollar Acquisition Series to the topic:

How to Buy an Accounting (Professional Services) Business.

In the meantime, let’s walk through what makes these deals unique and how to approach them like a seasoned buyer.

Why Buy an Accounting Firm?

Four reasons stand out right away:

Recurring Revenue

Most accounting firms thrive on recurring services: monthly bookkeeping, payroll, tax preparation. That means you don’t start from zero every January, the baseline is already there.

 Long-Term Client Relationships

When you find an accountant you trust, you usually don’t shop around for someone new every year. That loyalty creates retention rates other industries envy.

 Professional Credibility

Buying an established practice means stepping into a brand with an existing reputation. Unlike a startup where you’re shouting into the void for recognition, here you inherit trust on day one.

 Growth Opportunities

Beyond tax prep, many firms branch into advisory, wealth management, or outsourced CFO services. With technology reducing the grunt work, firms can scale by focusing on higher-margin services.

Translation: buy the right firm, and you’re not just buying stability, you’re buying an engine for growth.

Accounting Firm vs. CPA Firm: What’s the Difference?

This trips up many first-time buyers.

• Accounting Firm

  • Provides tax prep, payroll, and bookkeeping.

  • May not have CPAs on staff.

  • Easier for non-CPAs to buy and operate.

  • Valuation often hinges more on client loyalty than professional licensing.

• CPA Firm

  • Must be licensed in its state and often requires CPA ownership.

  • Can offer higher-level services like audits, attestations, and reviews.

  • Usually commands higher valuations because of credibility and service scope.

Why does this matter? Simple: if you’re not a CPA, buying a CPA firm can get complicated. Some states require at least one CPA in the ownership group. Translation: you might need to bring in a partner or structure ownership creatively. If you are a CPA, congratulations — you get the full buffet of opportunities.

Step 1: Define Your Acquisition Goals

Not all accounting firms are created equal. Before you start calling brokers, figure out:

• Size of Firm: Are you looking for a solo practitioner with a loyal book of clients or a multi-partner operation with staff and systems in place?

• Client Base: Do you want to focus on individuals, small businesses, or a specialized industry?

• Your Role: Do you plan to be hands-on or act as an investor with managers running day-to-day?

• Location: Is your strategy local and personal, or do you want a tech-enabled, remote-first model?

Knowing this upfront prevents you from wasting time (and money) chasing the wrong deal.

Step 2: How Accounting Firms Are Valued

Valuation in this space isn’t a mystery, but it does have nuances. Most firms sell for somewhere between 0.8x and 1.5x Annual Gross Revenue (AGR).

Value Drivers:

• Recurring vs. one-time revenue.

• Strong, long-tenured staff who plan to stay.

• Specialized services or niche expertise.

• Updated technology and efficient systems.

Red Flags:

• Key-client concentration (if one client accounts for 25% of revenue, that’s a problem).

• Outdated systems and technology that will cost you to replace.

• Thin margins once you normalize for owner’s compensation.

• High client churn rates.

Numbers matter, but in accounting firm acquisitions, retention matters more.

Step 3: Conducting Due Diligence

Here’s where you channel your inner detective.

• Financial Review: Look beyond tax returns. Normalize for seasonality (yes, tax season is real).

• Client Analysis: Study churn, average tenure, and client diversity.

• Staff & Talent: How many CPAs are there? Who really “owns” the client relationships — the firm or the individual accountant?

• Regulatory Compliance: Make sure licenses are in good standing and no disciplinary issues exist.

• Technology: A firm still working on spreadsheets in 2025 may not be a bargain after you invest in modern systems.

• Legal Review: Non-compete clauses, partnership agreements, and lease terms all matter here.

Pro tip: if the seller hands you a “client list” on paper, run.

Step 4: Financing Options

The good news: accounting firms are bankable.

• SBA Loans: The go-to for many acquisitions, though lenders like to see some relevant experience.

• Seller Financing: Common in this industry, often 10–30% of the deal, which also keeps the seller motivated to ensure clients stay put.

• Earn-Outs: Payments tied to client retention post-close. If clients stay, the seller gets paid. If they leave, you don’t overpay.

• Private Capital: Bringing in equity investors, particularly if you’re not a CPA and need to meet ownership requirements.

Step 5: Transition Planning — The Deal Maker or Breaker

You can buy the fanciest office in town, but if clients walk, you’re left with a really expensive filing cabinet. Transition planning is where deals succeed or fail.

• Client Retention: Seller introductions and active involvement in the first year are critical.

• Staff Retention: Accountants are like the golden geese here. Keep them happy with incentives, retention bonuses, and employment agreements.

• Cultural Continuity: Clients hire accountants they trust. Don’t “rebrand” into something unrecognizable overnight.

• Timing: Avoid big transitions during peak tax season. Nobody wants a new boss in the middle of April madness.

• Communication Strategy: Clients should hear one clear message: “Nothing changes, except now we can do even more for you.”

Step 6: Growth Opportunities Post-Acquisition

The fun part: once you’ve stabilized, you can grow.

• Expand Services: CFO-for-hire, advisory, wealth management.

• Tech Leverage: Cloud-based platforms, AI automation, less grunt work, more margin.

• Roll-Ups: Acquire multiple small firms and create efficiencies at scale.

• Cross-Selling: Introduce new services to existing clients who already trust you.

Remember: the real money isn’t in doing taxes faster, it’s in providing more value per client.

Step 7: Build the Right Deal Team

Don’t DIY this one.

• M&A Advisor/Business Broker: To find the right firm and structure the right deal.

• Attorney with Professional Services Experience: For licensing, compliance, and contracts.

• CPA Consultant: To validate financials and regulatory standing.

• Lender Experienced with Practices: Saves headaches and speeds approvals.

This isn’t just buying a business, it’s buying a regulated professional practice. The right team makes sure you don’t step on landmines.

Key Takeaways

• Accounting firms are among the most stable acquisitions available, but they’re relationship businesses.

• Client and staff retention matter as much as the numbers.

• Regulatory and licensing requirements can make or break a deal.

• Transition planning is everything.

Buy right, manage the transition well, and you can own a business that pays you year after year, in good times and bad.

Join Us at The Gathering Spot – September 24th

We’ll cover all of this, and more, at our upcoming Million Dollar Acquisition Series presentation:

• Date: Tuesday, September 24th

• Location: The Gathering Spot, Atlanta

• Topic: How to Buy an Accounting (Professional Services) Business

You’ll gain insider knowledge on valuation, deal structures, and transition planning — directly from advisors who’ve guided transactions in professional services.

Reserve your seat now and get ready to level up your acquisition strategy.

The Buyer’s EDGE Club

Buying a business isn’t just about finding the right deal — it’s about having the right tools, knowledge, and community. That’s why we created The Buyer’s EDGE Club.

Free Membership Includes:

• Invitations to select workshops and events, including the Million Dollar Acquisition Series.

• Community updates and buyer-focused insights from our team.

Paid Membership Unlocks Even More:

• Full access to our Buyer’s Resource Library (worksheets, LOI templates, due diligence checklists).

• Exclusive early access to new deal flow.

• Advanced training modules and acquisition strategies.

• Priority invitations to private workshops and networking.

• Direct Q&A opportunities with EDGE advisors.

Start free today at www.thebuyersedge.club — upgrade anytime to unlock the full suite of buyer tools and support.