When people think about the advisory team behind a search fund acquisition, attorneys and investment bankers are typically top of mind. However, accounting firms are often a consistently present partner across the entire deal, from early entity formation through a successful exit. Far from back-office support, a skilled CPA firm is embedded in every phase of the Entrepreneurship Through Acquisition (ETA) lifecycle.
More Than Compliance: An Accounting Firm’s Strategic Advantage
What does an accounting firm actually do for a search fund entrepreneur? The answer: far more than first-time CEOs expect. The right accounting partner brings structure, objectivity and strategic insight at every stage, well beyond tax filings and audits. For entrepreneurs acquiring lower middle market businesses, partnering with an accounting firm helps them:
- Identify financial risks before they become deal-breakers
- Establish reliable reporting systems for investors and lenders
- Navigate complex deal structures, like 338(h)(10) elections and asset vs. stock transactions
- Build scalable financial operations that support long-term growth and a credible exit
Although accounting firms are not required to always be independent, they are held to the highest professional standards. As a result, their guidance remains objective and focused on long-term success rather than transaction-driven incentives.
From Post-Close Accounting to Fractional CFO Support
Once a deal closes, the accounting firm’s role often expands rather than winding down. Many acquired businesses operate on informal books and lack the financial infrastructure that investors and lenders expect. Post-acquisition accounting typically involves, but is not limited to, transitioning to accrual-based reporting, establishing a monthly close process and ensuring tax compliance across new entity structures.
For operators not yet ready to hire a full-time CFO, outsourced accounting and fractional CFO services fills the gap. Boulay’s service teams can work directly with search fund operators in this capacity, serving as a seamless extension of the business rather than a distant outsider advisor.
Want to Learn More About Accounting’s Role in ETA?
For a deeper look at how accounting firms support search fund entrepreneurs at every stage, the white paper Exploring the Role Accounting Firms Play in a Search Fund Project is an essential resource. Authored by Boulay’s Ryan Turbes, CPA, and Clay Brownlee, CPA, in collaboration with A.J. Wasserstein, it offers a comprehensive view of how accounting firms drive value throughout the search fund lifecycle.