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For over 25 years, this premier CPA firm has provided exceptional accounting, tax, and advisory services to a highly loyal client base in Southern California. Serving 100+ clients the firm has... Businesses Franchises Brokers Loading... Highly Profitable, Established CPA Firm in Southern California Los Angeles County, CA (Relocatable) Asking Price:$3,300,000 Cash Flow (SDE):$1,177,588 EBITDA:Not Disclosed Gross Revenue:$1,920,888 Established:1999 Highly Profitable, Established CPA Firm in Southern California Business Description For over 25 years, this premier CPA firm has provided exceptional accounting, tax, and advisory services to a highly loyal client base in Southern California. Serving 100+ clients the firm has achieved remarkable organic growth driven entirely by word-of-mouth referrals and continues to show growth year over year.The practice is fully modernized, operating on a robust cloud infrastructure that allows for efficient, remote-first client interactions. The firm offers a comprehensive suite of services, including Payroll Prep, Write-up, LLC & Incorporation, and Corporate & Individual Taxes. The revenue mix is highly stable, split 65% business and 35% individual clients.Financial Highlights:•List Price: $3,300,000•TTM Revenue: $2,211,186•TTM SDE (Seller's Discretionary Earnings): $1,297,224•SDE Margin: 58.7%•Recent Growth: Revenue for Jan–Apr 2026 is up 11% compared to the same period in the prior year.Key Investment Highlights:•Strong Recurring Revenue Base: The firm boasts an 85% client retention rate with longstanding client history*B2B Focus: Businesses make up the majority of revenue, providing for a more stable revenue base*Diversified Services: The firm offers a broad range of services from payroll accounting to foundation set-up•Low Concentration Risk: No single client accounts for more than 5% of total revenue•Turnkey Operations: Supported by a dedicated team of 5 staff members with strong tenure•Seamless Transition: The current owner, who is retiring, is committed to staying on to help transition client relationships and provide necessary support to ensure continued success, or even stay on as a strategic advisor.This is a rare opportunity to acquire a highly profitable, scalable, and well-respected CPA practice with a predictable recurring revenue model and exceptional margins. This opportunity is well-suited for a range of qualified buyers, including:•Regional or National CPA Firms Seeking Southern California Market Entry: A firm looking to establish or expand its footprint in the Southern California market would gain immediate access to a well-established, loyal client roster of clients•Independent CPAs or Small Practices Looking to Scale: A solo practitioner or small firm ready to grow would acquire a fully staffed, operationally mature practice with proven systems, cloud-based infrastructure, and a recurring revenue base — allowing them to focus on growth rather than building from the ground up.•Out-of-State Firms Seeking a California Presence: A buyer based outside of California can integrate this practice with minimal disruption, leveraging the existing team and client relationships from day one. Ad#:2513779 Detailed Information Employees: 5 Full-time Reason for Selling: Retirement Business Location Location: Los Angeles County, CA Real Estate: Leased Lease Expiration: 10/31/2027 Rent: $3,300.00 Demographic Information for Los Angeles County Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Financial Benchmarks for California Accounting Businesses and Tax Practices Gross Revenue Benchmarks Cash Flow (SDE) Benchmarks EBITDA Benchmarks BizBuySell EDGE Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Jennifer Wu Transworld Business Advisors of North San Gabriel Valley View My Listings Phone Number 669-274-4845 Voice only (no SMS) Sponsoring Broker: Jonathan Cheung, CFA Ad#:2513779 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. Optional: Check if you want to use IRA/401k funds ($75K+) to buy a biz - Guidant will call Send Message By clicking the button, you agree to BizBuySell’s Terms of Use and Privacy Notice Business Listed By: Jennifer Wu Transworld Business Advisors of North San Gabriel Valley View My Listings Phone Number 669-274-4845 Voice only (no SMS) Sponsoring Broker: Jonathan Cheung, CFA Your request has been sent. What Happens Next? is reviewing your details. A representative will reach out soon to discuss your options. Expect a response in 1-2 business days. 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Why we like it
- Earnings Quality: 58.7% SDE margins on $2.2M revenue with $1.3M in seller's discretionary earnings represents best-in-class profitability for the accounting sector. The 85% client retention rate and 100% organic growth through referrals indicates genuine client satisfaction and pricing power that should sustain margins through economic cycles.
- Durability & Moat: 25-year track record with zero client concentration risk (largest client under 5% of revenue) and 65% business client mix creates exceptional revenue stability. The word-of-mouth driven growth model and long-term client relationships build switching costs that protect against competitive threats in this relationship-driven industry.
- Market Tailwinds: Southern California's robust small business ecosystem and complex regulatory environment create sustained demand for accounting services. The 11% year-over-year growth in early 2024 demonstrates the practice's ability to capture market expansion while maintaining premium pricing in an inflationary environment.
- Operator Advantage: Cloud-based infrastructure and 5-person experienced team with strong tenure eliminate the typical operational learning curve for acquirers. The retiring seller's transition commitment and strategic advisor availability provide knowledge transfer that preserves client relationships and institutional knowledge critical for professional services businesses.
How to improve it
- Pricing Optimization: Audit current fee structure against market rates and implement annual price increases of 8-12% for existing clients, starting with lowest-margin accounts. Most accounting practices undercharge established clients, and the 85% retention rate suggests significant pricing elasticity exists.
- Service Mix Expansion: Cross-sell higher-margin advisory services like financial planning, business consulting, and CFO services to the existing business client base. These services typically command 2-3x hourly rates compared to compliance work and leverage the existing trust relationships.
- Digital Client Acquisition: Implement systematic digital marketing including Google Ads, SEO-optimized website, and LinkedIn outreach to supplement word-of-mouth growth. Target specific niches like medical practices or construction companies where the firm has demonstrated expertise.
- Recurring Revenue Expansion: Convert one-time tax clients to year-round bookkeeping and payroll services, increasing average client value from seasonal to monthly recurring revenue. Focus on business clients who represent the highest lifetime value opportunity.
- Geographic Expansion: Leverage the cloud infrastructure to serve clients beyond Los Angeles County, targeting adjacent counties or specific industry verticals that don't require physical presence. This expands the addressable market without proportional cost increases.
Diligence notes
- Client Concentration Verification: Despite claims of sub-5% concentration, request detailed client revenue breakdown for top 20 accounts and verify retention rates by vintage year. Professional services often have hidden concentration in related entities or family groups that could create unexpected departure risk.
- Staff Employment Agreements: Review employment contracts, non-compete agreements, and compensation structures for all 5 team members to understand retention risk post-acquisition. Key staff departures in accounting practices can trigger client defections, making team retention critical to deal success.
- Revenue Recognition Analysis: Examine monthly cash flow patterns and work-in-progress balances to understand true economic earnings versus accounting earnings. Accounting practices often have timing differences between billing and cash collection that can distort reported margins.
- Technology Infrastructure Assessment: Validate the cloud infrastructure claims and assess software licensing costs, cybersecurity protocols, and disaster recovery systems. Professional services face increasing regulatory scrutiny around data protection, making robust IT systems essential for operational continuity.