Growing Your Firm | Strategies for Accountants, CPA's, Bookkeepers , and Tax Professionals Doubling Revenue to $2M within 12 Months of Acquisition w/Patrick Dichter's
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Oct 10, 2024 This time, Patrick Dichter, owner of an acquisition engine for accounting firms and Appletree Business Services, shares his insights on rapidly increasing revenue post-acquisition. He discusses the importance of strategic client selection for profitability and operational efficiency. Patrick emphasizes the need for a performance-based compensation model to enhance efficiency and client care. Listeners will also discover how leveraging social media can generate deal flow and aid in navigating the sales landscape within firms.
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How Patrick Entered Accounting M&A
- Patrick transitioned from digital marketing and small-business coaching into buying accounting firms after repeatedly referring out bookkeeping and seeing the opportunity.
- He noticed parallels with agencies and believed his sales/marketing skills would let him scale accounting firms effectively.
Practical Financing And Target Size
- Use a mix of cash, seller note, and SBA loans to finance firm acquisitions when possible.
- Target firms with $500K–$2M revenue to find buyable bookkeeping or tax practices.
Virtual Firms And Control Reduce Risk
- Virtual firms command higher multiples, often ~1.5x revenue, making them pricier to buy.
- Controlling bookkeeping reduces tax compliance risk because you see records before returns are prepared.