In today’s evolving M&A landscape, deal structures in accounting firm M&A are being reimagined. The goal? To meet the unique needs of both buyers and sellers. Gone are the days of one-size-fits-all agreements.

At White Tiger Connections, we help firms craft tailored deal structures that maximize value, minimize risk, and drive long-term success.

1. Earn-Outs: Aligning Interests & Ensuring Performance

Earn-outs are an increasingly popular mechanism for accounting firm M&A deals. According to Harvard Law School’s Forum on Corporate Governance, 37% of 2023 M&A deals included an earn-out. This shows their growing role in deal structures.

By tying a portion of the purchase price to future performance, earn-outs align both parties’ interests. They also help resolve valuation disputes.

💡 This structure ensures that both buyer and seller remain invested in post-merger success—providing greater confidence and accountability for all involved.

2. Retention Escrows: Securing Talent Post-Acquisition

In accounting, talent retention is everything. Retention escrows are an effective tool for protecting that value.

💡 A portion of the deal consideration is placed in escrow. It is released only if key employees remain with the firm for a defined period. This helps secure critical personnel and preserve institutional knowledge.

3. Seller Financing: Easing the Transition with Flexible Funding

Seller financing can open doors to deals that traditional funding would not support. It allows buyers to pay part of the purchase price over time. Sellers benefit from steady income and potential interest revenue.

💡 In accounting, relationship continuity is key. Seller financing balances financial flexibility with trust-building during integration.

Structuring for Long-Term Success

There’s no one-size-fits-all structure for accounting firm M&A. The key is understanding the specific goals, needs, and risks of each party.

At White Tiger Connections, we specialize in building customized deal structures in accounting firm M&A that support seamless integrations and set both firms up for scalable growth.

Ready to Explore Innovative Deal Structures?
Contact us to discover how creative deal structures in accounting firm M&A can help you achieve better outcomes—and a smoother path to growth.