Treetopclimes wrote:When purchasing CPA firm, how much do you usually put down?
30% down payment and then the remainder over 4 years from gross receipts?
Clawback provision?
Did anyone have to take out a loan for the down payment? If so, how many years for repayment? Interest %?
Any discussion appreciated.
I have seen a few deals, between 10 and 30 down, remainder over 3 years. Nominal interest rate.
No claw back per se BUT if you do the tax return for a client, you bought them. If they leave, that's on you.
If it's a good practice, you can get an SBA loan. Live Oak bank for example lends a lot of money for business purchases.