Case Study · Buy-Side
Illinois CPA Firm Acquisition: Navigating a Government Shutdown and Lender Change
A husband-and-wife team with tech and investment backgrounds sought to acquire a CPA practice — despite having no tax or accounting experience. LCG sourced and managed a $2.25M deal producing $850,000 in annual cash flow, structured with churn-based clawback protections and investor capital. The closing navigated a multi-month government shutdown delay and a mid-process lender change to secure a better interest rate.
The Buyers
A Tech-Background Couple Entering Accounting
The buyers were a husband-and-wife team with experience in the tech sector and the investment space. Neither had a CPA license or tax background. They were looking for a recurring-revenue business they could operate together and grow. LCG sourced and managed the deal on their behalf.
The Obstacles
Government Shutdown and a Lender Switch Mid-Process
Two significant delays hit during closing. First, a government shutdown froze SBA lending, requiring LCG to maintain communication and momentum through a multi-month delay. Second, LCG identified an opportunity to switch to a new bank offering a better interest rate — but the new bank was not an SBA-approved lender, which triggered additional underwriting requirements and caused further delays. LCG managed both issues to keep the deal on track.
The Results
Strong Returns and New Growth Ahead
The deal was structured with a 10% down payment ($225,000, from both the buyers and investors LCG helped source), 80% SBA financing, and a 10% seller note on a full 2-year standby with churn-related clawbacks. Year 1 DSCR was over 2.0x against a bank requirement of 1.3x. The buyers are projected to make a 150% ROI on their investment over the first 12 months and have already been introduced to two new tuck-in acquisition opportunities they are planning to pursue.
By the Numbers
Deal outcomes that speak for themselves.
From a stalled search to a closed deal and a growing business — in less time than most searchers spend reviewing CIMs.
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