Accounting practice for sale and CPA firms for sale
An accounting practice for sale is priced on its recurring fees and how many of those clients stay after the owner leaves, not on the office or the software. Most small CPA firms, tax practices and bookkeeping firms trade at roughly 0.8 to 1.5 times annual gross fees, and larger firms with staff and advisory revenue are valued on a multiple of earnings. Fees that repeat every month or every year, a staff that stays and an owner who is not the only contact for the biggest clients push the price up. On CompanyBrokers every accounting practice listing shows gross fees, SDE, asking price, the implied multiple and the service mix, while the client list and engagement data stay in a data room you open after an NDA and a proof of funds step.
- NDA signed
- Proof of funds
- Data room
Accounting practice for sale near me
Set a deal alert for accounting practices and CPA firms by state, price range, service mix and minimum recurring fees, and new listings reach your inbox the day an owner or a broker publishes them. Healthy practices with steady bookkeeping and tax clients are bought quickly, often by a neighboring firm that already knows the market, so an alert beats checking a search page once a week.
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How much is an accounting practice worth
Buyers start from gross fees and adjust for how safe those fees are. A practice where 70 percent of revenue comes from monthly bookkeeping, payroll and advisory clients is worth more than one where 70 percent is annual tax returns, because monthly work renews without a sales effort. For firms under roughly $1 million in fees the price is usually a multiple of revenue or of seller's discretionary earnings (SDE), which is net profit plus the owner's pay and perks. Larger firms with managers and a second partner are valued on adjusted EBITDA.
| Practice profile | Gross fees | Client mix | Typical multiple | Indicative price |
|---|---|---|---|---|
| Solo tax preparer, mostly seasonal individuals | $180,000 | 85% annual returns | 0.7x to 1x fees | $125K to $180K |
| Bookkeeping and tax firm, 2 staff | $420,000 | 60% recurring monthly | 1x to 1.4x fees | $420K to $590K |
| CPA firm with business tax and advisory | $900,000 | 70% recurring | 1.2x to 1.6x fees | $1.08M to $1.44M |
| Virtual firm, small business clients on subscription | $600,000 | 90% monthly | 1.3x to 1.8x fees | $780K to $1.08M |
These rows are worked examples to show the math, not listings. Put your own numbers into the business valuation calculator to see a range for a specific firm, and read the full method in the business valuation formula guide.
What buyers check before buying a CPA firm
- Fees by client and by service for the last three years, and how many clients paid every year, since one off projects do not renew
- Client concentration, especially when one client or one family of entities pays more than 10 percent of fees
- Owner dependence, meaning how many of the top clients talk only to the owner and how much work the staff already handles
- Staff tenure, billing rates and whether key employees have signed non solicitation agreements
- Engagement letters, signed power of attorney forms and the practice management and tax software, so client files can transfer cleanly
- Pending notices, open IRS or state matters and the professional liability claims history, plus who buys the tail coverage
- Work in process and unbilled time at closing, and how it is split between buyer and seller
- Licensing, because attest services need CPA ownership and some states limit who can hold client records
Client retention is the real asset
Almost every accounting practice sale ties part of the price to how many clients are still there after the first filing season. A common structure pays 50 to 70 percent at closing and the rest over one to three years, based on fees collected from the clients that transferred. That protects the buyer from a book that leaves with the owner, and it rewards a seller who introduces the buyer to the top accounts personally. Clients who hear about the sale from the owner, with a clear picture of who will serve them and at what price, stay at much higher rates than those who get a form letter. Plan the handover for the months after tax season, when the owner and the buyer can both work the calendar.
Financing an accounting practice purchase
Accounting practices with documented recurring fees are regular candidates for an SBA loan to buy a business. Buyers commonly put 10 percent or more down, and sellers often carry a note for a share of the price, which also keeps them motivated to hand over clients well. Lenders look at three years of returns, fee reports by client, the transition plan and the buyer's own experience. A buyer who has run a practice or a department, and who holds the right credentials for the work, finances far more easily than one who has not.
Selling your accounting practice
Owners who want the top of the range spend a year before listing moving clients onto engagement letters, shifting big accounts to a manager or staff accountant and cleaning up the fee reports. Prepare three years of tax returns, a fee report by client without names for the first round, a staff list with tenure and the software stack, then decide whether to list it yourself on the Owner Listing plan or work with a broker. The step by step version is in sell my accounting practice.
How much does an accounting practice sell for
Most small accounting practices sell for roughly 0.8 to 1.5 times annual gross fees, with the price tied to recurring work and client retention. A practice billing $400,000 a year with mostly recurring bookkeeping and tax clients would typically be priced between $320,000 and $600,000, often with part of it paid over time.
How do I buy a CPA firm
Start with your budget and financing, then set a deal alert for firms in your state and service mix. After an NDA you review fees by client and service, staff and software, make an offer with a retention based payment structure, and close after due diligence. Most buyers use an SBA loan plus a seller note.
Do you need to be a CPA to buy an accounting practice
Not always. Bookkeeping, tax preparation and advisory practices can be owned by non CPAs, but attest work such as audits and reviews generally requires CPA ownership under state board rules. If the practice does attest work, check your state board of accountancy before you sign.
Can you get an SBA loan to buy an accounting practice
Yes. SBA 7(a) loans are common for practice purchases, because recurring fees from documented clients support the payments. Lenders typically ask for three years of tax returns, fee reports by client, a down payment and a transition plan from the seller.
How long does it take to buy an accounting practice
A typical purchase takes four to nine months from the first conversation to closing. Deals that close after tax season give the buyer time to work with the seller on client introductions, while a purchase announced in January often loses clients in the first filing season.