Solutions

Thinking about selling your CPA/CFO firm?

If you are currently thinking about moving on to the next chapter of your life, and you are considering selling your CPA firm, then we may have the right (liquidity) solution for you. indinero has been acquiring (buying) CPA/CFO firms since 2017, and we have recently ramped up our efforts in order to be even more active in this area.

Broad Guidelines for Valuations

The following four web pages outline some of the general broad guidelines that we use as a reference point for valuations – because, broadly speaking, these are the going rates and current approaches in the market.

How Small Businesses Are Valued Based on Seller’s Discretionary Earnings (SDE)

Earnings Multiples for Small Business

EBITDA Multiples by Industry

What Add Backs Are Legitimate in an M&A Deal?

Thinking about selling your CPA/CFO firm

Our Deal Structure

For the right types of CPA firms, we typically look at offering at least 70% payment upfront at the deal’s closing (this can potentially be more than 70% if the seller’s CPA firm is highly attractive for indinero), and the balance (i.e., 30%) over the next 2-3 years by means of annual down-payments that are proportionally linked to annual revenue retention – the seller does not need to be actively working during this 2-3 year period, but the seller basically then plays a stand-by role to assist indinero if anything comes up that we need the seller’s help with.

For acquisition, an ideal CPA/CFO firm would have

Annual revenue of between $2,000,000 to $10,000,000.
Personnel of anything between approximately 10 to 90 people.
Annual revenue should (at minimum) be approximately sixty percent derived directly or indirectly from corporate/B2B clients.
A very big plus for indinero is a CPA firm that is a mostly/entirely remote-first company – for example: most ideally, very few (if any) physical in-person meetings with clients and/or colleagues.
An added bonus can potentially be any type of management consulting services – for example: most ideally, outsourced CFO services.

Contact Us

Let’s Talk

If you know anyone else who might potentially be interested in selling their CPA firm/bookkeeping firm, we will pay you a referral fee if via email you connect one of our M&A decision-makers with them and indinero then buys their firm.

Disclaimer:

All of the above (this entire webpage) does not constitute an offer and/or contract of any type, nor should it be considered an offer and/or contract of any type. All of the above (this entire webpage) references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Summary

indinero, which has acquired CPA/CFO firms since 2017, outlines its acquisition approach for firm owners considering a sale. The company typically offers at least 70% upfront with the balance over 2-3 years tied to revenue retention, and targets firms with $2M-$10M in annual revenue, 10-90 personnel, and at least 60% B2B revenue, preferably remote-first.

Key Facts

indinero has been acquiring CPA/CFO firms since 2017.

indinero typically offers at least 70% payment upfront at deal closing for CPA firms.

The remaining 30% of the purchase price is paid over 2-3 years through annual down-payments linked to revenue retention.

Ideal CPA/CFO acquisition targets have annual revenue between $2,000,000 and $10,000,000.

Ideal acquisition targets have approximately 10 to 90 personnel.

At least 60% of an ideal target's annual revenue should come from corporate/B2B clients.

indinero prefers CPA firms that are mostly or entirely remote-first with few in-person meetings.

indinero pays a referral fee for connecting its M&A decision-makers with CPA firm owners who then sell to indinero.

Frequently Asked Questions

What is indinero's deal structure when acquiring a CPA firm?

indinero typically offers at least 70% payment upfront at closing, with the remaining 30% paid over 2-3 years through annual down-payments proportionally linked to annual revenue retention. The seller does not need to work actively during this period but plays a stand-by role.

What are the ideal criteria for a CPA/CFO firm acquisition by indinero?

An ideal firm has annual revenue between $2,000,000 and $10,000,000, approximately 10 to 90 personnel, at least 60% of revenue from corporate/B2B clients, and is preferably remote-first with few in-person meetings. Management consulting or outsourced CFO services are a bonus.

Does indinero pay referral fees for CPA firm introductions?

Yes, indinero pays a referral fee if you connect one of their M&A decision-makers via email with a CPA or bookkeeping firm owner, and indinero then buys that firm.

Since when has indinero been acquiring CPA/CFO firms?

indinero has been acquiring (buying) CPA/CFO firms since 2017 and has recently ramped up efforts to be more active in this area.