How a real estate investor bought a $1.7M accounting firm

Hey, it’s Ben!

Today I’m sharing a story about Garrett.

He was a real estate investor with a good corporate job who wanted to diversify his income, but had never bought a business before.

Six months after starting his search, he closed on an accounting firm in Asheville, North Carolina for $1.7M, and is projecting a 180% return on his investment in year one.

Community Spotlight

Before sharing Garrett’s case study, here’s one of our success stories from the Acquisition Ace community.

Rodrigo bought a $1.25M mechanic shop and is on track for 250% ROI in year one after joining Acquisition Ace.

He went from running a Turo car rental business to owning a 32-year-old mechanic shop with clean books and strong cash flow.

👉 Want access to all the tools, calls, and people you need to succeed? Book a call with our team here.

Before the Deal

Garrett had been successful in real estate, but rising interest rates were making deals harder to underwrite.

He wanted another income stream - one he could actually control - and stumbled across business acquisition as the path to get there.

He started working with me, learned how to read financials, talk to sellers, and evaluate deals.

Several fell through before the right one came along, but each time, he bounced back quickly and kept looking.

Finding the Deal

What drew Garrett to this particular accounting firm wasn’t just the numbers.

The firm had two owners.

One wanted out entirely, but the other (the CPA who had built the firm over 20 years) wanted to stay on.

Her son worked there, she owned the building, and her interests were completely aligned with making the transition work.

That combination of strong financials and a motivated, committed remaining owner made it the right deal to move on.

(Inside Acquisition Ace, members learn how to evaluate not just the numbers but the people behind a deal, because sellers often make or break the acquisition. If you’d like to learn the ins and outs of dealmaking in the Acquisition Ace community, book a call with our team here.)

The Deal Breakdown

Purchase price: $1.7M

Revenue: $1.5M+

EBITDA: $875K

Financing: SBA loan (90%), Garrett put in ~$182K total

Garrett’s salary: $100K/year

Remaining CPA salary: $300K/year

Projected distributions: $200K+

Total year one compensation: ~$320K

Cash-on-cash return: ~180%

A performance incentive was also built in:

If revenue exceeds $1.6M, the remaining CPA earns 30% of the overage, keeping their interests fully aligned going forward.

What He’s Doing Now

Garrett is still working his regular job.

The firm runs almost entirely without him, with the remaining CPA handling day-to-day operations, and running decisions by Garrett only when needed.

His main focus right now is letting the business run as it has been, getting the new hire integrated, and observing the first full year before making any meaningful changes.

The Key Lesson

“Find a good mentor and just stick with it. These things can happen - you can buy a business. It seems so crazy and far-fetched, but it’s certainly attainable if you put in the work.”

Garrett didn’t have an accounting background, or experience buying businesses.

But what he did have was consistency, the willingness to keep going after deals fell through, and the patience to wait for the right opportunity.

That combination got him across the finish line, and with the help of a community like Acquisition Ace (where 2,000+ members learn how to find, finance, and close deals)…

You can figure this out too.

👉 Book a call with our team here to see if it’s a good fit, and we’ll talk soon!