How Jessica Golden Bought an Accounting Firm and What Every Business Buyer Can Learn
Buying a business is not passive income. It is complex work that demands planning, capital, and commitment. In this episode, certified public accountant Jessica Golden shares how she bought an accounting firm and now manages it while splitting her time between Phoenix and Hawaii. Her story offers practical lessons for anyone considering an acquisition.
Finding Businesses for Sale
The first hurdle is finding the right business. Jessica discovered broker websites listing businesses for sale, a marketplace many buyers overlook. These platforms function like real estate listings, offering everything from accounting firms to restaurants. After signing nondisclosure agreements, buyers receive information packages that vary widely in quality. Jessica looked at 10 to 15 businesses before ultimately buying the first one she saw.
Evaluating Quality of Earnings
Revenue alone does not tell the full story. Jessica focused on the quality of earnings rather than top-line numbers. In accounting, firms with fewer but more complex clients generate steadier year-round revenue and opportunities for added services. Buyers in any industry should examine the sustainability and seasonality of revenue streams before making an offer.
Planning a Smooth Transition
Transition planning matters. Jessica chose a gradual handover, working alongside the seller as he moved into retirement. This built trust with clients and staff and allowed for knowledge transfer. She warns that many sellers wait too long to sell and may lack the energy to support a longer transition.
Financing a Business Acquisition
Financing is another challenge. Jessica used an SBA loan and initially found the process overwhelming while working full-time. Hiring an SBA loan broker matched her with a lender and simplified the process. Even then, she had to switch banks when a CPA on the original bank’s board questioned her hybrid work model. The loan process required historical financials, projections, a business plan, and personal financial data.
Managing a Business Remotely
Remote ownership adds complexity. Jessica splits her time between Hawaii and Phoenix and notes that some businesses are better suited to remote management than others. Client-facing services often require physical presence during busy periods. Buyers should factor time commitment and travel costs into financial projections.
Due Diligence and Risk Management
Due diligence is nonnegotiable. Social media often glamorizes business ownership, but most acquisitions require hands-on work. Buyers should verify credentials, check business registrations, and be wary of wiring money to unknown entities. Jessica cautions against letting excitement override judgment. Some deals are not worth doing.
Preparing for Life After Closing
Business acquisition is a full-time commitment. The shift from buyer to owner happens immediately after closing, with no break in between. Thorough research, realistic expectations, and strong financial preparation increase the odds of success. Jessica’s experience shows that a disciplined approach can help new owners build a business that lasts.
