Central CT Tax & Investment Advisory Firm

Full Editorial Writeup

ABA Advisors is marketing a central Connecticut tax, accounting, bookkeeping and investment advisory practice. The firm provides full-service local accounting work covering everything except audits, serving a primarily local client base with a handful of out-of-state 1040 clients. There is no single client niche or concentration, which spreads risk across a broad book of recurring tax and accounting relationships.

The deal is structured two ways. Buyers can acquire just the tax and accounting firm, which does $790k in gross revenue, or take the package including the investment advisory arm that adds $210k in recurring management fees for $1,000,000 total. The seller will not sell the advisory firm on its own, so the upside AUM-based fee stream only comes with the full package. Total cash flow to owner is reported at $576,628, an unusually high roughly 58 percent owner-earnings margin that reflects the lean, owner-driven nature of small accounting practices.

Operationally the firm is old-school. It is not paperless, uses only some engagement letters, and 25 percent of clients still physically drop off their documents at the office. That is friction for the seller but a clear modernization opportunity for an operator who can digitize workflows and lift capacity without adding headcount.