Buying an accounting firm during tax season smart move or headache?

January 26, 2026

by a searcher from Northeastern University in New York, NY, USA

Looking at firms in the $125K–$600K SDE range and curious about the tradeoffs at this size. A few questions for the group: 1/How did you structure your first accounting firm acquisition – seller financing, SBA, seller forgiveable notes? 2/ For those who did asset sales only on their first deal, how did you make that work? 3/Any recommendations for buyer-side advisors or brokers who specialize in accounting firm acquisitions? Would appreciate any insights from folks who've been through it.

2 Likes

20 Replies

243 Views

Replies

Reply by a searcher
from New York University in Miami, FL, USA

My business partner and I closed on an acquisition this past December. Operationally, we went in knowing that he still needed to run a full tax season at another firm he owns (with plans to sell that firm after April). Our strategy has been to elevate a senior staff member to run most of the tax season at the legacy firm. I would also say our partnership overall gives us flexibility to cover the new business as needed, while he may sometimes need to deal with issues at the legacy firm. That said, any acquisition comes with more learning curves and unplanned calls than you initially expect. I wouldn’t discount the time required to meet new staff, connect with high-priority clients, and truly learn how to replicate the deliverables clients are accustomed to — before you even begin evolving the quality and scope of the work. We funded the deal with an SBA loan at 10% down and structured it as an asset sale. While we didn’t use counsel that specializes exclusively in accounting firm acquisitions, we did work with professionals who had meaningful deal experience. In my view, the most important factor is surrounding yourself with people who have done volume. Our broker, for example, has about 10 years in the industry but deal flow comparable to what many brokers see in 20+ years. Lastly, accounting firms typically have strong margins, and banks love this space. You’re playing in one of their favorite sandboxes, use that leverage.

Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - nice to meet you. Closed many of these deals last year. The first thing to clarify is whether the firm legally requires a CPA. For SBA purposes, this is critical if the business provides any attest services or if “CPA” is in the firm’s name, since lenders will require a licensed CPA to own or control the entity and oversee operations. That single detail can completely change deal structure, buyer eligibility, and lender appetite. SBA lenders are especially sensitive to retention risk in accounting firms because the value of the business is almost entirely relationship-based. If clients leave, cash flow collapses, so continuity of ownership, transition support, and client handoff matter more here than in most other industries. We have a lot experience financing accounting firms via the SBA. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

+18 more replies.

Join the discussion