Pro Serv Podcast by Collective 54 Episode 241 - Buy to Build: The Acquisition Strategy Fueling Growth in a Fragmented Market
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Nov 19, 2025 In this engaging discussion, Brad Dower, a CPA and expert in accounting roll-ups, shares his journey in acquiring tax and accounting firms. He reveals the challenges of scaling through acquisitions and the importance of client retention. Brad explains innovative financing strategies, like seller-carry arrangements, to facilitate million-dollar deals while maintaining cash flow. He emphasizes the need for a tailored integration process to ensure seamless transitions and highlights the opportunity within the fragmented CPA market for savvy investors.
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From Small First Deal To Rapid Roll-Up
- Brad started buying small tax books in 2019, beginning with a $25,000 deal to get his feet wet.
- He scaled via four larger acquisitions in one year, driven primarily by acquisition growth rather than organic sales.
Use Seller Carry To Align Incentives
- Structure deals with seller carry tied to client retention to keep incentives aligned.
- Aim for multi-year retention targets and include contractual callbacks that reduce seller carry if retention falls.
Close Deals With Creative Financing
- Get creative with financing: combine bank loans, seasonal cash flows, and seller carry to avoid large down payments.
- You can close million-dollar deals with zero cash up front by layering financing sources.