One of the questions we get from Buyers looking to acquire a firm is “Why do Accounting Firm Sellers Ask and Often Require Any Potential Buyer to be a CPA?”
There are 2 reasons why this is a common request.
Reason #1 is that if you the buyer are going to advertise your firm as a CPA firm, then most states require at least 51% of the ownership of the firm must be held by licensed CPAs. Every state is different so be sure and check your state licensing entity for their specific requirements.
Reason #2 is if the seller of their CPA firm, in addition to standard tax preparation, accounting and bookkeeping, has provided their clients with more complex advice like business management or financial service guidance, their clients may now expect this type of ongoing advice from their ‘accountant’ and perceive that a non-CPA will not be able to give this type or quality of counsel when needed. This could cause client attrition post closing, which the seller and buyer both want to avoid.
For more information or if you have a question about buying an accounting practice, go to our ABA Advisors website here and click the Contact Us page. Once there you can fill out the webform and click the Buying a Practice option when asking your question.
Or if you’re looking to acquire your first or next accounting practice and have a general question on the process, leave me a comment or send me an email at: jeff@acctsales.com and I’ll answer it for you.
Jeff Bell – Managing Director – 317-674-3335 call / text
https://acctsales.com/broker/jeff-bell/