Practice Checklist - Buying An Accounting

: Break down income by type. Monthly recurring advisory fees are worth 3–5x more than one-time tax prep revenue due to their predictability.

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. buying an accounting practice checklist

This checklist breaks down the acquisition process into four critical phases: initial strategy, deep due diligence, valuation, and post-close transition. 1. Pre-Acquisition Strategy : Break down income by type

: 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 This checklist breaks down the acquisition process into

: Firms generating at least $500k in revenue attract broad interest; those over $2M are often targets for private equity consolidation.