Business Advisory

Preserving Your Accounting Firm's Identity While Growing Through Acquisition

4 min read

Apr 14, 2025 8:00:00 AM

When Marcus and Rachel Dillon, owners of Dillon Business Advisors (DBA), encountered a potential $900,000 firm acquisition in Houston, they initially saw strong revenue and a convenient location. Yet they walked away. “It just wasn’t a good fit,” Marcus recalls. “The client mix, culture, and team were too different from who we are.” Their experience is a reminder that some accounting firm acquisitions add lasting value, while others become expensive headaches.

In a recent episode of the Who’s Really the BOSS? podcast, Marcus and Rachel unpacked their latest acquisition: a firm in St. Louis. They finalized the deal as busy season began, January 31st to be exact, but only after plenty of due diligence and prayerful reflection. They’re firm believers that an accounting firm can grow through acquisition without sacrificing culture or exceptional client service.

Old-School Prospecting in a Digital World

Most firm owners receive plenty of broker emails or see ads about buying and selling practices. Marcus, however, favors an old-school approach. Years ago, he mailed personal letters to dozens of nearby practices, explaining his interest in buying a firm. Several owners replied, leading to DBA’s first acquisition in 2011.

Today, the Dillons still use this personalized tactic. “Most email is junk, but if it actually comes in a physical envelope in the mail, you look at it twice,” Rachel says. They recently sent letters to more than 100 firms in the Dallas–Fort Worth area and received multiple responses. Yet they remain picky about cultural and client alignment. The Houston opportunity, for instance, didn’t match their values or service model—even though it had the right revenue.

Discovering the Right Fit Through Relationships

Soon after the Houston deal fell through, the Dillons learned through a friend that a CPA firm owner in St. Louis was ready for his “next chapter.” Marcus reached out to explore acquisition possibilities and also potentially offer guidance because he’d completed several acquisitions over the years and knew what to look for.

As talks progressed, Marcus found that the St. Louis practice mirrored DBA in many ways. About 55% of the work was client accounting services (CAS), with 45% tax. The firm served around 100 client families, yet 22 core relationships generated roughly 82% of the revenue. Those similarities and a strong cultural match made the deal appealing, even if it meant pulling everything together right before tax season.

Thorough Due Diligence: Looking Beyond Numbers

Financial statements and tax returns were only the beginning. Marcus and his Director of Operations, Amy McCarty, dug into client billing histories, write-ups and write-downs, and time logs. They learned exactly which clients preferred in-person meetings or still dropped off paper documents.

Having clarity on top clients was key. “We focus on those who generate the majority of revenue,” Marcus says. “That way, we can nurture vital relationships without ignoring everyone else.”

Lessons from a prior acquisition also influenced the Dillons’ approach. Back then, they realized how crucial it was to identify clients who relied heavily on face-to-face connections with the owner. This time, they prepared communication plans and a gradual transition so the new clients would still feel supported.

Managing Change: Integration Without Disruption

While the deal was finalizing, busy season was already in sight. The Dillons wanted to provide stable, high-quality service, so they kept many things consistent for clients. For example, they retained the two-year physical office lease in St. Louis. That way, clients accustomed to dropping off paperwork could continue doing so—even as DBA slowly introduced digital delivery, e-signatures, and remote meeting options.

On the technology side, they chose to integrate critical systems, such as UltraTax, under DBA but delayed major software changes until after tax season. They plan to keep using the same communication tools in the near term, but eventually move everyone to their preferred practice management system when things are less hectic.

The deal’s structure also sets clear expectations. “We negotiated a floor and ceiling,” Marcus explains. “If any client isn’t a fit and leaves, the previous owner can refer someone else. It keeps both sides committed to making sure good clients stay and that the transition goes smoothly.”

Guided by Faith and Community

For Marcus and Rachel, every business choice goes beyond profit. They spent weeks in prayer, asking God to open doors if this was the right path and close doors if it was not. Rachel focused on having pure motives—neither fear nor greed should drive the decision. Marcus also leaned on peers in his Forum and in his Christian business owner group, C12, for counsel.

These conversations with mentors and peers helped ease doubts that often surface during acquisitions. “We’re not trying to do this on our own,” Marcus says. “We prayed, got advice from trusted friends, and worked out the details. Once we felt peace, we moved forward.”

Building Value Without Losing Identity

The Dillons’ latest acquisition, which adds about 20% to their firm’s revenue, shows how smaller, focused deals can spur strategic growth. By targeting a practice that shares similar client services, retaining two experienced team members, and providing a seamless client experience, they protect their own culture and brand.

Accounting firm acquisitions don’t have to derail existing operations or compromise service. With careful analysis, respectful communication, and patience, both the buying firm and the seller can thrive. For a closer look at every step—from old-school letter writing to spiritual discernment—listen to the full episode of Who’s Really the BOSS? You’ll hear how thorough planning and shared values can unite two practices into something stronger than either one alone.

Rachel and Marcus Dillon

Rachel and Marcus Dillon, CPA, own a Texas-based, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 15 professionals. Their latest organization, Collective by DBA , supports and guides accounting firm owners and leaders with firm resources, education, and operational strategy through community, groups, and one-on-one advisory

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