Professional & B2B Services · Buyer guide
Buying an Accounting & Bookkeeping Firm business
Published · Reviewed by The Diligence Standard Team · Updated
an Accounting & Bookkeeping Firm can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.
How the business works
Recurring client revenue, partner/owner relationship dependence, staff leverage, realization and seasonal tax work determine transferability.
Risks to test
- Clients follow owner/partner
- Staff retention
- Tax-season concentration
- Underpriced legacy clients
- Professional licensing
- Client data/security
Evidence to request and reconcile
- Client revenue/tenure
- Engagement letters
- Staff payroll
- Billing/WIP
- Retention/churn
- Licenses/security
Decision questions
- Which clients depend personally on owner?
- What revenue is recurring?
- What staff capacity exists?
- Which clients are underpriced?
- What licenses/consents are required?