5 Key M&A/Roll-Up Considerations for Accounting Firms
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Geoff Bruskin
Key Factors to Consider
There has never been a better time to consider purchasing an accounting firm. The seller market is lush, the multiple is relatively low, the pay out timelines and upfront cash commitment can be quite small, and sellers are quite often willing to work with a buyer’s unique preference to have them stay on in a limited capacity throughout a reasonable integration, and possibly even beyond.
So why aren’t more buyers entering the market? Buyers can be professionals who are working in big four or top 100 accounting firms, mid or high-level professionals working in small firms, sole proprietors or small firm owners who want to expand their already profitable business, and even professionals who have never worked in public accounting before as long as they understand the most salient nuances of the accounting profession.
No matter the angle you approach this from, here are five critical considerations as you contemplate YOUR unique rollup strategy:
1.
How much capital do you have
and from where is it coming?
2.
Who is your
optimal seller?
3.
What kind of compensation do you need to make your life work in the first year?
4.
What is your concrete plan for first stabilizing your new firm, then organically growing it in the first 30, 90, 180, and 365 days following commencement?
5.
What variables will demarcate that critical juncture when you are ready to do it again?
It is completely possible to go from not owning an accounting firm to owning and operating a $1m, $5m, or even $10 million annual revenue accounting firm in just a handful of years. Exceptional client service, technical competency, and operational efficiency is how you make this happen.
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