Most acquisition stories end at the closing table. Someone announces the deal, peers send congratulations, and nobody talks about what happens next.
On a recent episode of Who's Really the BOSS?, Marcus Dillon, Rachel Dillon, and Amy McCarty looked back on the first year after Dillon Business Advisors acquired a $1.5 million firm.
Here's the short version: DBA kept about 72% of the clients and roughly 95% of the revenue.
Prefer to watch? Here's the full conversation.
How DBA Evaluated the Accounting Firm Acquisition
DBA didn't go looking for an acquisition just to grow the top line. The leadership team set a goal of reaching $5 million in revenue. Marcus pointed out that organic growth alone tends to run below 10% a year, even at large firms. Acquisitions are a faster, more deliberate way to build the budget for director-level roles, give team members career paths, and reduce the risk of any single large client.
The acquired firm checked several boxes:
- About 60% of its revenue was already monthly recurring, close to DBA's own model.
- Its team was set up in a pod structure that could roll into DBA's teams.
- The owners' time was healthy, and the firm was profitable.
- It was about two and a half times the size of DBA's first 2025 acquisition, but smaller than DBA, so DBA's culture and processes would lead.
- Its mission, vision, and values closely matched DBA's.
How the Deal Was Structured for Attrition
Every acquisition loses some clients, so DBA planned for it in the deal itself. Both of DBA's 2025 acquisitions included a retention floor and ceiling tied to revenue. If revenue drops, the purchase price can adjust down to as low as 80%. If DBA grows the book through price increases and referrals, the seller can earn up to 120%.
Because the terms are tied to revenue rather than client count, losing a poor-fit client isn't a crisis as long as the revenue is replaced. The seller has embraced that too. Since closing, the team has won roughly $10,000 in new monthly recurring revenue, about $7,500 of it from one family.
Marcus was clear that the floor is a backstop, not a target. “We want to be at the 110, 120% if we can.”
What Broke in the First 90 Days After the Acquisition
When they looked back, the team couldn't point to much that broke. The one real issue was a team member who didn't fit the culture. The decision to part ways came within the first month.
Marcus said it was the kind of decision that sometimes should be made before a deal closes. On DBA's first acquisition, a similar call was made before closing, and it kept things much cleaner afterward.
Rachel added a point every owner should hear: when someone leaves, even someone brand new, the rest of the team wonders, “Am I next?” The answer is clear, direct communication with each person about their own role and future.
Accounting Firm Acquisition Results One Year Later
Client Retention After an Acquisition: About 72%
Amy counted every client that came over, including annual-only clients who were never likely to stay. Across all clients, retention was about 72%. Among business clients, it was about 65%. The rate was higher among the monthly recurring clients — only a small number left (one over fees, and another sold, but the new owner signed on with DBA).
Revenue Retention After an Acquisition: About 95%
The firm had a $1.5 million revenue base, and DBA expected to land between $1.4 and $1.5 million for the year. That held even after a price increase in January: 5% to 10% on monthly clients and about 10% on tax work.
Marcus explained why the two numbers tell different stories. Annual-only clients can leave, and you won't know for 11 months. Monthly recurring clients tend to give a new firm a chance. That's why DBA weights recurring revenue so heavily when evaluating a deal.
One example: a client paying about $975 a month, well below DBA's $1,500 monthly minimum, left after being quoted $500 a month elsewhere. DBA offered to meet partway, but ultimately let her go. Replacing that client with one at $1,500 to $2,000 a month is a better outcome for the team and for the firm.
That minimum exists for a reason. Under DBA's Team of 3, a Client Service Manager, a Client Controller, and a Client CFO all serve each client, with the CFO meeting the client at least once a year. The fee has to support that level of service.
Staff Retention After an Acquisition: About 71%
Five of the seven team members who came over are still with DBA.
Of the two that left, one was that culture-fit decision in the first month. The second came close to the one-year mark and was about development, not culture. After coaching and assessment, the team decided the gap between where this person was and where the role needed them to be was too wide.
On the positive side, a current Client Controller is being promoted into a Client CFO seat to lead a pod, which was part of the reason the deal made sense in the first place. That promotion also lets the former owner move into an advisory role for some of the clients he has always worked with. Now they can move to Team of 3 with no bottleneck around one person.
The Surprise KPI: Monthly Financials by the 15th
DBA's teams are built to deliver monthly financials by the 15th, and there's a bonus tied to it. The acquired team was not operating that way. DBA set a target of 80% on time and communicated it clearly, and on-time financials increased.
From the start, DBA told each acquired team member what they would stop doing and start doing in their new role. Marcus noted that having the Team of 3 roles clearly defined, with a documented picture of what success looks like, made those conversations easier. The team could point to the role and its expectations instead of relying on a vague sense of what "good" looks like.
What's Next for Integrating an Acquired Firm
A year in, DBA is focused on bringing everyone, new hires and acquired team members alike, back to the basics of how DBA does its work: onboarding, workflow, tools, and delivery. Team members recorded walkthroughs of their monthly work for each client. Leadership used those recordings, with help from AI and review by team members in parallel roles, to spot easy wins and decide which tasks belong with a Client Service Manager and which with a Client Controller.
DBA will also continue evaluating the client roster so the team has room for the right new clients, especially after a year of strong organic growth.
How to Measure the Success of an Accounting Firm Acquisition
If you're considering an acquisition, don't judge success by client count alone. Watch revenue retention, recurring revenue, and whether the team and clients who stay fit the firm you're building. Structure the deal so it can absorb some attrition. And plan for the year after the close as carefully as you plan the deal itself.
Collective by DBA works with firm owners who are considering an acquisition or have just completed one through one-on-one coaching. Contact us to talk through your own plans.
