What are the terms and conditions of the staff employment agreements?

You should review existing staff contracts to determine if renegotiation is needed after acquisition. Understanding employee agreements helps ensure continuity and staff retention.

Can I buy only CPA accounts instead of the whole practice?

Yes, some firms may be open to selling just their book of business. This option can offer flexibility, especially if you're looking to grow an existing practice.

Can I relocate the CPA firm after purchase?

Relocation may be possible depending on the client base and lease agreements. It's important to evaluate how a move might impact client retention and operational costs.

How many hours does the current owner work?

Understanding the owner's current workload can provide insight into operational demands. If the owner works excessive hours, consider how this affects future staffing and your role.

What are my financing options for buying a CPA firm?

Financing options include bank loans and seller financing. A typical down payment is 10% or more of the firm's value. Like buying a house, the larger the down payment, the smoother the process.

How long does the CPA firm acquisition process take?

Timelines vary but usually involve several weeks to months. Discuss the seller’s role during transition and due diligence to clarify expectations and responsibilities.

Is joint ownership an option when buying a CPA firm?

Yes, some arrangements allow for partial or joint ownership. This can reduce upfront costs and allow a gradual transition of management responsibilities.

Buying a CPA Firm

Buying a CPA Firm: Strategic Benefits, Due Diligence Essentials, and Questions Every Accounting Practice Buyer Should Ask

Why Buy a CPA Firm?

Are you looking to buy a CPA firm? This page runs through the essential information you need beforehand. We look at why this can be a strong business opportunity and how to approach the process securely and successfully.

Starting your own practice has advantages - lower capital requirements, more autonomy - but many buyers find that acquiring an existing CPA firm offers a faster, more secure path to profitability.

Buying an established CPA firm gives you immediate cash flow, trained staff, and proven systems - advantages that startups rarely enjoy.

You bypass the typical setup headaches: office leases, licenses, technology procurement, and more. And with revenue often flowing from day one, you avoid the uncertainty of waiting years for profitability - an issue that causes most startups to fail.

If you're able to retain experienced staff and preserve client relationships, you'll benefit from continuity and goodwill that would take years to build independently.

How to Buy a CPA Firm

The buying process differs from traditional business acquisitions. CPA firm sales are often simpler because many owners approaching retirement seek a clean exit after years of building their firm.

That creates a favorable buyers’ market. With research and outreach, you may discover profitable firms actively for sale - or owners open to discussion.

Don’t underestimate the power of a phone call. A direct approach can uncover hidden opportunities at better value than listed sales.

Once a lead is established, you’ll need to negotiate terms. Price, payment structure, staffing, leases, and transition support are all on the table.

The viability of the deal comes down to your due diligence.

Buying a CPA Firm: Due Diligence

Due diligence here isn’t as exhaustive as in large mergers - but it’s still critical. Your first filter is the owner: trust, transparency, and an open dialogue set the tone.

From there, you need to investigate the firm’s operations and financials:

Review their pricing model - is it sustainable and competitive?
Understand their billing practices and payment cycles
Sample client files to evaluate work quality and accuracy
Request documents showing revenue, expenses, and tax returns for recent years

Due diligence helps you validate the firm’s valuation and identify risks - but it also provides insight into future operations and transition planning.

Don’t rely solely on documents. If something feels off, ask questions. Speak with employees, vendors, or peers to get a fuller picture.

Questions to Ask When Buying a CPA Practice

What are the terms of staff employment agreements? Will renegotiation be necessary?
Can I acquire just the client list or a portion of the firm?
Is relocation feasible - or would that jeopardize retention?
How many hours do current partners work each week?
What are my financing options? Will the seller consider installment payments or bank-backed deals?
What transition period is planned - and how involved will the seller be?
Is joint ownership or phased acquisition an option?

Should You Buy a CPA Firm? Key Takeaways

There are many pros and cons to buying a CPA firm. But with smart targeting, good instincts, and thorough due diligence, the right acquisition can accelerate your accounting career and business success.

If you're exploring opportunities, our listings are a great place to start.

View Our CPA Firm Listings

About the Author

Daniel Crowley is a qualified accountant and the Founder of the Accounting Practice Exchange, a leading US-based platform that connects accounting practice buyers and sellers nationwide.

A CGMA with a BA (Hons) in Economics, Daniel has held senior strategic roles in VC and private equity–backed businesses, with extensive experience in accounting, M&A advisory, and cross-functional leadership.

Since 2012, Daniel has focused on growing the Exchange into a respected, independent platform that supports practice owners, buyers, and brokers with market visibility and informed decision-making - while remaining unaffiliated with any brokerage firms and not participating in transactions. As an entrepreneur, he built the platform to offer a trusted resource in the M&A space - supporting both firm owners and brokers involved in accounting practice transitions.

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