Buying An Accounting Practice Checklist Info

This checklist breaks down the acquisition process into four critical phases: initial strategy, deep due diligence, valuation, and post-close transition. 1. Pre-Acquisition Strategy

: If the current owner is the sole point of contact for major accounts, retention risk skyrockets. Look for firms where staff already manage relationships.

: Verify active licenses in all operating jurisdictions and review history for professional liability claims or ongoing HR disputes. 3. Valuation & Deal Structure Is Buying an Accounting Practice Right for You? | AICPA buying an accounting practice checklist

Buying an accounting practice is a high-stakes shortcut to growth, allowing you to bypass the "startup grind" for an established client list and immediate cash flow. However, the success of the deal hinges on seeing past the numbers to evaluate the firm’s "operational DNA".

: Ensure no single client represents more than 5% of total revenue. A 90%+ annual retention rate over three years is the industry benchmark for healthy firms. This checklist breaks down the acquisition process into

: Audit the "tech stack." A firm still relying on local servers and paper files carries significant post-acquisition integration costs.

: Decide if you require a local brick-and-mortar presence or if you are open to a remote-first practice with lower overhead. Look for firms where staff already manage relationships

: Break down income by type. Monthly recurring advisory fees are worth 3–5x more than one-time tax prep revenue due to their predictability.