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
: Ensure no single client represents more than 5% of total revenue. A 90%+ annual retention rate over three years is the industry benchmark for healthy firms.
: Secure pre-approval. Expect down payments of 10–20%, with the remainder often covered by bank loans or seller notes. 2. Deep Due Diligence buying an accounting practice checklist
: Firms generating at least $500k in revenue attract broad interest; those over $2M are often targets for private equity consolidation.
: If the current owner is the sole point of contact for major accounts, retention risk skyrockets. Look for firms where staff already manage relationships. This checklist breaks down the acquisition process into
: Are you seeking geographic expansion, a specific niche (e.g., dental or healthcare), or specialized service lines like tax advisory?
: Decide if you require a local brick-and-mortar presence or if you are open to a remote-first practice with lower overhead. A 90%+ annual retention rate over three years
Before looking at listings, define your "Ideal Firm Profile" to avoid mismatched acquisitions that lead to high client churn.