The accountant’s guide to acquiring a firm: Steps, risks, & smart tips
For many chartered accountants, growth isn’t just about adding more clients, it’s about scaling capacity, expanding into new geographies, or strengthening your service lines. One of the fastest ways to achieve this is by acquiring an existing accounting practice. Instead of spending years building a firm from scratch, you step into a business that’s already running.
What does it mean to buy an accounting practice?
Acquiring a practice simply means purchasing a firm’s clients, team, systems, brand name, and goodwill for a price, giving you full control of an established operation.
Example:
You want to grow quickly. Instead of setting up a new firm, you buy a respected practice in your area. Overnight, you get their trained staff, loyal clients, an established brand, and functioning workflows. You start building on what already exists instead of starting from zero.
Requirements to buy an accounting practice
License & certification
A valid chartered accountant license
Up-to-date ICAI firm registration (if purchasing as a partnership/LLP)
Professional experience
Sellers prefer buyers who can maintain the firm’s quality. Helpful experience includes:
Managing client portfolios
Handling compliance-heavy work
Leading teams and operations
Business & financial knowledge
You’re buying a business, so you must be able to evaluate:
Revenue cycles
Client quality & risk
Receivables, profit margins, and goodwill value
Overall operational stability
Steps to follow when acquiring an accounting firm
1. Define your goals
Are you looking for more clients, better clients, new service lines, or geographical expansion? Your goals determine which firms you should consider.
2. Identify the right firm
Shortlist practices based on:
Size and revenue
Client mix
Staffing and skills
Technology adoption
Industry specialization
3. Conduct due diligence
Review:
Financials (recurring revenue, margins)
Client risk
Staff capability & turnover
Workflow maturity
Pending disputes or liabilities
Platforms with centralized client records, task histories, and document archives can make this evaluation much easier and more transparent.
4. Evaluate fit
Check culture, communication style, client expectations, and team compatibility.
5. Structure the deal
Common formats include upfront purchase, earn-outs, mergers, or profit-sharing. Select what suits your risk comfort and cash flow.
6. Plan the transition
Map data migration, client communication, team alignment, and workflow consolidation. A comprehensive practice management tool simplifies this phase significantly.
How to retain clients during the transition
Client retention decides if the acquisition is a success. Here’s how to keep them happy:
Communicate early with a joint announcement.
Retain key staff, at least during the first few months.
Keep pricing and workflows stable initially.
Personally introduce yourself to top clients.
Deliver small wins—faster turnarounds, better communication, or a simple client portal.
Risks of buying an accounting practice (and how to mitigate them)
Client & staff loss
Start with transparent communication, gradual process changes, and a 90-day retention plan.
Hidden liabilities
Perform thorough financial and legal due diligence. Review old disputes, compliance gaps, and pending notices.
Integration challenges
Standardize workflows early and unify tech systems. Using one practice management platform from day one prevents chaos.
Inheriting internal problems
Identify weak processes, high-risk clients, or inefficient staff during due diligence and plan upgrades.
Overpaying for goodwill
Validate recurring revenue, check client dependency on partners, and use performance-linked earn-outs.
Questions to ask before buying an accounting firm
Financial & client stability
How much revenue is recurring?
What is the churn rate?
Any pending liabilities or disputes?
Team & operations
What’s the organization structure and staff turnover?
Are workflows documented or people-dependent?
What tools and systems does the firm use?
Deal & transition
Will the outgoing partner stay for handovers?
What’s included in the sale—brand, assets, goodwill, data?
What deal structure is preferred?
Final thoughts
Acquiring an accounting practice can accelerate your growth significantly, but only if approached with clarity, due diligence, and a structured transition plan. The right technology, especially a unified practice management system, like Zoho Practice, helps you manage migration, workflows, teams, and client expectations without friction.
With the right approach, acquiring a firm isn’t just a shortcut, it’s a smart long-term strategy for sustainable growth.