deal-sourcing

name	deal-sourcing
description	Research and qualify CPA firm acquisition targets using broker networks, public records, and market intelligence

Deal Sourcing

Systematic identification, research, and qualification of CPA firm acquisition targets in the Houston market.

Process

1. Source Identification

• Monitor APS.net listings for new Texas CPA practices
• Scan BizBuySell for "CPA firm" + "Houston" + "Texas"
• Check Houston CPA Society member directory for retirement-age owners
• Review TX State Board of Public Accountancy for firm status changes
• Track competitor acquirers to identify market activity

2. Initial Qualification

Filter targets against Dark Factory criteria:

• Gross revenue: $100K-$1M preferred range
• Employee count: 5-15
• Owner age: 55+ (approaching retirement)
• Location: Houston metro area
• Practice type: tax preparation, bookkeeping, advisory

3. Financial Pre-Screen

Apply the Dark Factory valuation model:

Buy price = 0.4x gross revenue
Post-AI EBITDA = 75-80% gross revenue
Exit = 7x EBITDA
Minimum ROI threshold: 10x
Maximum payback period: 12 months

4. Due Diligence Research

For qualified targets:

• Verify 3-year revenue trend (stable or growing)
• Check for pending litigation or regulatory actions
• Confirm SBA 7(a) eligibility
• Research owner background and motivation to sell
• Identify client concentration risk (no single client > 20% revenue)
• Assess technology stack and automation potential

5. Output Format

Each sourced deal produces a deal card:

Deal ID: [broker listing ID]
Revenue: $[X]
Buy Price: $[X] (0.4x)
Post-AI EBITDA: $[X]
Exit Value: $[X] (7x)
ROI: [X]x
Confidence: [high/medium/low]
Next Action: [specific step]

Data Sources

• APS.net (primary broker)
• BizBuySell.com
• Houston CPA Society
• TX State Board of Public Accountancy
• LinkedIn (owner profiles)
• Texas Secretary of State (entity filings)