Buying An Accounting Practice Checklist Direct

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

: 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. buying an accounting practice checklist

: Secure pre-approval. Expect down payments of 10–20%, with the remainder often covered by bank loans or seller notes. 2. Deep Due Diligence This checklist breaks down the acquisition process into

Due diligence for an accounting firm is not a standard audit; it is a search for "red flags" in the client base and staff culture. deep due diligence

Before looking at listings, define your "Ideal Firm Profile" to avoid mismatched acquisitions that lead to high client churn.