Firm Acquisition - Advice needed
Hi all,
I am looking for some advice on how some of you have structured a firm acquisition.
My current approach is going to be asking for 100% seller financing, paid over 4 years. In return, the purchase price will be slightly higher and more appealing for the seller. With that being said, it would also depend on client retention. Seller is okay with staying on board for a couple years, albeit with a reduced work schedule to ensure proper continuity of client service.
I tried the SBA/Conventional loan approach but to no avail.
Some information:
Target Firm:
- Purchase offer: up to $475K
- 450K Revenue (2025)
- 300K SDE
- 800 clients - consisting of 1040s, entities, and fiduciary returns.
I do worry that 800 clients will be too much for me to handle, and would require some help. However, I am fine with bringing on seasonal help, or full time staff members.
Few questions:
- What were the unexpected costs that you had once you acquired the firm?
- Would you structure this any different way?
- Is there anything that I am missing or should be more aware of?
Any recommendations/inputs are appreciated. Thank you all!