Accounting Practice Checklist — Buying An

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

: Secure pre-approval. Expect down payments of 10–20%, with the remainder often covered by bank loans or seller notes. 2. Deep Due Diligence buying an accounting practice checklist

: 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

: Break down income by type. Monthly recurring advisory fees are worth 3–5x more than one-time tax prep revenue due to their predictability. Expect down payments of 10–20%, with the remainder

: 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 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".