The accounting and CPA services industry serves businesses and individuals with tax preparation, audit, bookkeeping, advisory, and compliance services. The lower middle market segment is highly fragmented with tens of thousands of independent firms, making it an active target for consolidation by private equity-backed roll-up platforms and larger regional practices. Demand is largely non-discretionary, as tax compliance and financial reporting obligations exist regardless of economic conditions.
Who buys these: Private equity-backed accounting roll-ups, independent CPA practitioners looking to expand, regional accounting firms seeking geographic or service-line growth, and individual CPAs seeking to acquire a book of business
0.9–1.4×
Typical EBITDA multiple
$1M–$5M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Recession Resistant
Essential service
Minimum $500K EBITDA, recurring revenue from tax and bookkeeping engagements preferred, staff CPAs in place, owner willing to stay 12–24 months for transition, clean client contracts with no unusual fee arrangements
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Key items to investigate when evaluating a Accounting/CPA Firm acquisition
Seller Intelligence
Who sells Accounting/CPA Firm businesses?
Founding CPA partners approaching retirement age (55–70), solo practitioners seeking liquidity, small regional firms with 2–5 partners looking to merge up, and owners facing succession challenges with no internal buyer
Typical exit timeline: 12–24 months
Accounting/CPA Firm businesses in the $1M–$5M revenue range typically sell for 0.9–1.4× EBITDA. Minimum $500K EBITDA, recurring revenue from tax and bookkeeping engagements preferred, staff CPAs in place, owner willing to stay 12–24 months for transition, clean client contracts with no unusual fee arrangements
Accounting/CPA Firm businesses typically trade at 0.9–1.4× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.
Accounting/CPA Firm businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Client revenue multiple with earnout tied to 12–24 month post-close retention rate
Key due diligence areas include: Client retention history and concentration analysis by revenue and billing hours; Staff credentials, licensure, and non-solicitation agreements; Quality of recurring vs. one-time revenue and billing rate benchmarking; Pending IRS or state board complaints, malpractice claims, or client disputes; Technology stack and workflow systems including practice management software.
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