Buying An Accounting Practice Checklist -
: 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
: Are you seeking geographic expansion, a specific niche (e.g., dental or healthcare), or specialized service lines like tax advisory? buying an accounting practice checklist
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. : Verify active licenses in all operating jurisdictions
: Secure pre-approval. Expect down payments of 10–20%, with the remainder often covered by bank loans or seller notes. 2. Deep Due Diligence | AICPA : Are you seeking geographic expansion,
: Audit the "tech stack." A firm still relying on local servers and paper files carries significant post-acquisition integration costs.
: If the current owner is the sole point of contact for major accounts, retention risk skyrockets. 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.