My bookkeeping firm sold, and it sold fast.
Before I launched BookedKeeper, my agency dedicated to helping bookkeepers grow their businesses, I built my own virtual bookkeeping firm from zero to over 100 clients in a little over a year. Then I sold it for a 2x revenue multiple.
The interest was intense: sixteen offers in under a month, and we closed above asking. It's clear that for many, buying an established, fully remote bookkeeping firm seems like a good deal.
I experienced this whole process as the seller. But here’s what gives me a bit of a different angle: I was heavily involved in the transition and got a ton of direct feedback from the buyer. This means I saw the ins and outs, not just from my side of the table.
I'm in a solid position to walk you through the real pros and cons of buying, what the process actually entails, and the kind of outcomes you can expect as a buyer.
And if you do decide buying is the route for you, I've got advice to help you navigate it. Plus, I'll share an alternative approach you might not have thought about.
Finding the Right Bookkeeping Business
Where do you even start looking to buy a bookkeeping business? It’s not like they’re listed next to used cars.
You could go the brute force route. Dial up every bookkeeper in a 50-mile radius and see if anyone's thinking about retiring or cashing out. The problem? This can take an eternity, literally years, with zero guarantee of finding someone who's a) selling, b) selling a good business, and c) selling a business that fits what you’re looking for. It’s a long shot, and frankly, a pretty inefficient use of your time.
Then there are the general business buying brokers and websites. You'll find tons of these online, listing everything from pizzerias to pet grooming salons. My advice? Be very, very hesitant here.
Here's why:
They don't specialize. A broker who sold a dry cleaner yesterday and is trying to sell a software company tomorrow isn't going to be in a great position to judge the actual health, efficiency, or even the legitimacy of a bookkeeping business. They won't know the specific KPIs, the common pitfalls, or the nuances of client contracts and software stacks in our industry. It's a bit like buying high-authority backlinks from a vendor who doesn't understand SEO. You might get something, but is it what you actually need, and is it quality? Probably not.
Now, let me tell you what I did, and what I can genuinely recommend based on my own selling experience. I used a specialized broker called Poe Group Advisors. They focus exclusively on accounting, CPA, and bookkeeping firms.
Why does this matter?
Because a specialized broker like Poe Group is far more likely to have higher quality listings. Trust me on this. They put firms through the wringer before they even consider listing them.
When I was preparing to sell my firm, they asked me for a ton of detailed information and documentation:
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Detailed Financial Statements: We’re talking internal balance sheets and income statements for the last 3-4 fiscal years, plus year-to-date figures.
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Corporate Tax Returns: The same period, the last 3-4 completed years.
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Monthly Revenue & Deposit Records: A good 12 to 18 months of this, showing the cash flow consistency (or lack thereof).
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Breakdown of Services & Revenue by Service: For the previous full fiscal year, so buyers see where the money is actually coming from.
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Schedule of Add-Backs/Discretionary Expenses: For the last 3-4 years and year-to-date. This helps normalize earnings and show the true profitability.
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Anonymized Client Information: Details on client concentration (you don't want one client making up 80% of revenue!), average client lifespan, and service types per client.
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Employee & Contractor Information: Who's on the team, their roles, compensation, and contract status.
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Technology & Software Stack: What tools are being used? Are they efficient?
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Office/Premises Details: Even for virtual firms, they ask for information about any physical commitments.
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Marketing Materials & Strategy Overview: How does the firm find its clients? What's the online presence like?
To me, that level of due diligence upfront signals their care about having only quality businesses on their platform. They're protecting their reputation, and by extension, they’re protecting buyers.
Poe Group has listings from all over the United States and Canada, a good number of them are fully cloud-based operations. Exactly the kind of modern firm most buyers are looking for.