Hello Everyone,
We are a small team looking to acquire & consolidate accounting/bookkeeping/tax prep practices in the US/Canada. The main points of the thesis: 1) a massive shortage of local accounting talent/resources 2) lower multiples relative to other industries 3) many cross selling opportunities for recurring revenues (payroll, tech, hosting, etc###-###-#### most sellers are comfortable financing a significant amount of the acquisition. These are the most obvious but the twist is that we are looking to outsource/offshore a significant amount of the work to create a more compelling margin structure and ability to scale. From our initial analysis, most owners are comfortable exiting with a final payout based on customer retention. This would offset some risk but (potential) churn is where we feel the most significant risk might be.
The team consists of a serial entrepreneur as well as senior 1) M&A Executive 2) Customer Success Exec (software) 3) CPA/CA with an MBA to lead operations
Questions for the community: 1) has anyone gone through this process before and done a market analysis 2) other than size, customer demo/mix, location, etc., what criteria should we be using to source potential acquisitions 3) what legal constraints are there, we realize there are state specific regulations, etc. around non accountants/CPAs owning tax prep 4) Any ideas on streamlining operations post acquisition? 5) Is there any appetite for institutional investors in this space? 6) General comments and/or feedback
Lot of info, feel free to comment on all or any of the points above. Thank you!
156 views
14 comments
Sign in to see all replies.
Create an account.