The Tribe, Clarke & Co. Approach to CPA Firm Acquisitions
- Tribe, Clarke & Co.
- Mar 27
- 2 min read
At Tribe Clarke & Co., we specialize in acquiring and scaling CPA firms, focusing on long-term growth and stability. Our approach ensures a smooth transition for firm owners, maintains operational excellence, and creates a path for future success. Here's what sets us apart.
We are committed to acquiring firms with strong fundamentals and a promising future. Our ideal acquisition target meets a specific set of criteria:
Core Services: The firm primarily offers tax and accounting services.
Longevity: Has been in business for at least seven years.
Financial Profile: Revenue between $1 - $5 million with $150,000 to more than $1 million in net operating cash flow.
Partnership Continuity: At least two partners are willing to stay on for three to five years.
Growth Track Record: The firm has a consistent client and earnings growth history.
CPA firm owners choose to sell for two primary reasons. Many owners, particularly those in their forties, want to diversify their financial risk. They still have years of entrepreneurship ahead of them but prefer to bring in a partner to help scale the firm while gaining liquidity. The other is that around ages 50-55, owners often realize they lack a clear succession plan. Internal buyouts typically involve long, drawn-out payouts over 10 years, while private equity firms bring their complexities. Tribe Clarke offers a more structured and transparent alternative.
Firm owners sell to us because of our financial offer and our transaction certainty and efficiency. Our acquisitions process is streamlined, ensuring transactions close in three months or less. We also determine valuation using a straightforward multiple on trailing twelve months of free operating cash flow and conduct upfront due diligence to ensure fair pricing and avoid unnecessary renegotiations.
We make selling simple and fair. Here's how our financial structure works:
Majority Cash Buyout: We acquire 51% ownership, primarily in cash.
Earnouts for Alignment: A portion of the price is structured as an earnout, keeping sellers engaged in firm growth and transition.
Opportunities for Junior Partners: Owners sometimes sell part of their remaining 49% stake, opening doors for junior team members to buy into the partnership. We help facilitate these deals through financing options tailored to the firm's needs.
What Happens After the Sale?
Unlike other acquisition models, we don't disrupt what works. Instead, we enhance it. Transparency is key. We introduce regular financial reporting and team check-ins to align everyone with the firm's goals.
Our team implements a transparent, performance-based bonus structure that ties directly to firm profitability and individual contributions. Tribe Clarke takes on time-consuming operational tasks, allowing partners to focus on strategic growth and client service. Day-to-day operations remain unchanged, ensuring a seamless transition for staff and clients.
As part of our onboarding, we host a week-long training in Miami, FL, where new firms learn the Tribe Clarke Growth Playbook, meet other team members, and align on our vision for the future.
At Tribe Clarke, we acquire great firms and make them even better. Our approach is built on fairness, transparency, and long-term success—for the firms we acquire and their owners.
We'd love to start the conversation if you're a CPA firm owner looking for a structured succession plan or a growth partner.