Key takeaways
- Buying an existing CPA practice is usually lower risk than starting one, because you inherit clients, staff, and processes on day one.
- The buyers who do best define their goals, strengths, deal-breakers, and ideal client before they look at a single listing.
- For U.S. buyers using an SBA 7(a) loan, plan on a minimum 10% equity injection based on total project cost. A seller note can cover up to half of that only if it is on full standby for the life of the loan.
- Focus on cash flow to owner, not just revenue, when deciding what size practice to buy.
- An experienced accounting practice advisor like Poe Group Advisors can help you find the right firm and avoid a difficult transition.
Is buying an accounting firm a good idea?
For many CPAs, yes. There are many reasons to consider purchasing an existing CPA firm. First and foremost, purchasing an accounting firm that is already set up and running can be logistically easier than building from the ground up. When you buy an existing firm with established operations, it can help minimize the risk associated with starting a new business. An existing CPA firm should already have a strong client roster, as well as existing processes in place. It should also have experienced staff who know the clients and the workflow, which shortens the learning curve after the handoff. Because staffing remains one of the biggest challenges in the profession, inheriting a capable team is often one of the most valuable parts of an acquisition.
Competition for good practices has also increased. Private equity-backed firms and larger regional firms are actively acquiring accounting practices, which means individual buyers who are prepared, financed, and clear about what they want have a real advantage.
What should I know before buying a CPA firm?
Before you even begin searching for CPA firms for sale, be intentional about what you want. The more clarity you have going in, the more likely you are to make a good purchase decision. The questions below will help you get there.
You can also learn What Sellers Want in a Buyer (And What Gets Buyers Rejected).
10 questions to ask when buying an accounting practice
1. What does my practice need to look like in three years for me to be happy with it?
Suppose you have made the purchase and you are describing your practice to a friend three years from now. This vision exercise will reveal a lot about what you want, like the type of accounting services you will offer. Take 10 minutes or so to write your answer out.
2. What are my strengths?
Include areas of professional expertise as well as personal traits. These will be the things that ultimately drive your business.
3. What are my weaknesses?
It is important to know your weaknesses so you can work around them. Working on weaknesses is generally frustrating and counterproductive. It is better to hire others who are strong where you are weak, or to avoid practices where a particular talent is needed that you do not have. For example, if you are good at business development but not strong at managing staff, you may want a practice with a very good office manager already on board. Or you may want to partner with someone who can take on that part of the practice. Keep in mind that a partner shares the acquisition costs, but also the revenue.
4. Am I willing to relocate? If so, what do I want in a community?
This may seem obvious, but many buyers have not thought it through. Talking with accounting practice owners all over the country can be a good learning experience, but it is usually not the best use of your search time, unless you are acquiring a cloud-based or virtual firm that can be run from anywhere. Talk with your family and focus on the areas that work best for you. Poe Group Advisors lists cloud accounting firms for sale as a separate category for buyers who want location flexibility.
5. What are my deal-breakers?
What aspects of a practice or a practice owner are simply unacceptable to you? For example, would you buy a practice where the seller currently works 3,500 hours per year? Would you buy a practice with a large niche you are unfamiliar with, like auditing? Would you take on a firm whose technology stack you would need to replace, or one that depends on a single key employee? What you say “no” to is very important.
6. How would I describe my ideal client?
Similar to question one, this will reveal a lot about the type of CPA firm you want to buy. Being matched with the right clients has a major impact on client retention after closing. It will also shape your long-term success and happiness with the practice, because client relationships are so important.
7. What fee structure do I want?
When looking at accounting firms for sale, pay close attention to the fees charged to clients. This ties in closely with question six. Low fees may or may not be a deal-breaker, but they are a very important factor when evaluating different practices. Many CPAs undervalue their services. It is practically an epidemic in the profession. You may be able to buy a firm and raise fees without much trouble, and if so, you may be buying a practice that is a bargain. That assessment needs to be made carefully, by analyzing the clients and the services being provided.
8. How much money can I invest?
Financial considerations are important. Strong bank financing, including SBA 7(a) loans, is available for accounting practice acquisitions, but you will need money for a down payment. For U.S. buyers using an SBA 7(a) loan on a complete change of ownership, the SBA requires a minimum equity injection of 10% of the total project cost, not just the purchase price. A seller note can count toward up to half of that requirement only if it is on full standby, meaning no principal or interest payments for the life of the SBA loan. SBA rules were updated again effective October 1, 2026, so confirm the current requirements with your lender before you make an offer. Canadian buyers will work under different financing rules and should speak with their bank early in the process.
9. What size accounting practice do I want to buy?
If you have answered questions 1 through 8, narrowing the size of your search should be fairly easy. Do not sell yourself short. Be open to buying a larger practice rather than a small firm. What you should focus on is cash flow to owner. Look for a practice that generates enough cash flow to owner to comfortably cover your debt service and your living needs, and then some. You are buying a CPA firm for more freedom and income, and a practice with good cash flow to owner offers that.
10. How much transition help do I need from the seller?
In our experience, transition is counterintuitive. For more on this topic, read our article on accounting practice transitions.
Find the right CPA practice with Poe Group Advisors
The accounting practice M&A advisors at Poe Group Advisors are here to help you find the right accounting firm for your acquisition goals. View our current accounting practice listings to find an opportunity.
If you do not see a suitable listing, we will work to find a practice owner who wants to discuss selling.
Register as a buyer to get notified about new listings.
Frequently asked questions about buying a CPA practice
How much down payment do I need to buy a CPA firm?
For U.S. buyers financing with an SBA 7(a) loan, the minimum equity injection is 10% of the total project cost. A seller note on full standby for the life of the loan can cover up to half of that amount. Lenders may require more.
Is it better to buy an accounting practice or start one?
Buying is usually lower risk, because you acquire an existing client base, trained staff, and working processes, and you have cash flow from the first day.
What should I look for when evaluating a CPA firm for sale?
Look at cash flow to owner, fee levels, client mix and fit with your ideal client, staff quality, niche services, technology, and how much transition support the seller will provide.
Can I buy a CPA practice in another state or remotely?
Yes. Cloud-based and virtual firms can often be run from anywhere, which widens your search beyond your local market.
