Growing Your Firm | Strategies for Accountants, CPA's, Bookkeepers , and Tax Professionals

The Current State of Accounting Firm M&A W/Todd Steinberg

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Apr 3, 2025
Todd Steinberg, founder of Thrive Financial Group, shares his extensive expertise in the accounting industry. He dives into the shifting dynamics of mergers and acquisitions, highlighting the growing impact of private equity. The discussion touches on crucial acquisition drivers like human capital and geographical reach. Todd also demystifies deal structures, including rollover equity, and offers insights into current valuation trends based on client retention and profitability. This is a treasure trove for any accounting firm owner considering growth or a sale!
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INSIGHT

PE Is Raising Prices But Culture Still Matters

  • Private equity and investors are driving recent shifts by seeing accounting as a scalable, recession-proof business.
  • Their presence raises valuations and competition, but cultural fit still limits many PE wins.
ADVICE

Hit The $500K Threshold To Attract Buyers

  • Aim for roughly $500k revenue to attract multiple buyers and bolt-on interest from $1–5M firms.
  • Know that private equity typically targets firms above ~$2M, so plan your growth accordingly.
INSIGHT

Human Capital And Mix Drive Strategic Acquisitions

  • Buyers often acquire firms primarily for human capital, client mix, and cost synergies.
  • Strategic acquisitions accelerate growth faster than organic client acquisition when goals require scale.
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