Why early conversations with buyers could make all the difference to your eventual sale.
There's something we hear quite often when speaking with CPA firm owners across Canada.
"I'm thinking about selling in a couple of years but I'm not in any rush right now."
It's a perfectly reasonable response. After spending 20 or 30 years building a practice, most owners have a fairly good idea of when they'd like to step away. They might be thinking about retirement at 65, finishing a few more tax seasons or simply waiting until the timing feels right.
And if retirement is still two years away, why start thinking about buyers today?
It's an interesting question, because from what we're seeing in the CPA acquisition market, two years before an intended exit might actually be one of the best times to start having those conversations.
Not necessarily to sell today but to understand who's interested, what your firm could be worth and what a transition might eventually look like.
For some owners, we're the first conversation they've ever had about selling
Something we've found interesting in our conversations with CPA firm owners is how many have never seriously discussed succession with a potential buyer.
They've spent decades advising clients, managing staff, growing their practices and dealing with all the challenges that come with running an accounting firm.
But when it comes to their own eventual exit, there often hasn't been much of a conversation.
Sometimes our call is the first time they've been asked whether they would consider selling, merging or bringing in a successor.
It's not that these owners haven't thought about retirement. Many have. They simply haven't explored what happens between deciding to retire and actually handing over the business.
And the broader research suggests this gap between thinking and planning is fairly common.
According to the Canadian Federation of Independent Business's October 2026 succession report, only 6% of surveyed Canadian small business owners have a formal written succession plan, despite 63% expecting to exit within the next decade.
The picture isn't entirely different in the United States.
A 2025 article published by the Illinois CPA Society reported that only 41% of accounting firms had a formal succession plan in place.
These studies don't tell us how many owners have received acquisition inquiries and the Canadian survey covers small businesses across industries. But they do highlight how often succession remains an idea rather than an actual plan.
We've written before about what CPA firm owners ask during their first conversations about selling. Often, the discussion has very little to do with an immediate transaction.
It's more about understanding what the options might look like.
Finding the right buyer isn't an overnight decision
When owners imagine selling their accounting practice, it's natural to think about the actual transaction: receiving an offer, agreeing on a price, signing documents and eventually handing over the keys.
But there's quite a bit that happens before any of that.
A buyer needs to understand the firm, its clients, employees, revenues, profitability and how much of the business depends on the existing owner.
The seller needs to understand the buyer, too.
Are they looking to combine firms? Do they want the existing owner to stay involved? What will happen to employees? Will the firm's name remain? How will clients be introduced to the new ownership?
And perhaps most importantly, do both sides actually like the idea of working together?
For many smaller CPA firms, these aren't decisions that get made after one meeting.
An owner might speak with several potential buyers before finding someone whose plans align with their own. Even then, there may be months of discussions around valuation, financing, due diligence and the transition itself.
That's why starting the conversation two years ahead of an intended exit doesn't seem premature to us.
It seems sensible.
Waiting too long can change the value of the conversation
Here's where timing becomes particularly interesting.
Imagine two CPA firm owners with similar-sized practices, comparable revenues and profitability.
One owner is planning to retire in two years. They're still actively involved in the business, managing important client relationships and willing to support a gradual transition.
The other is hoping to retire in three months. They're ready to leave, would prefer a quick sale and don't necessarily want to remain involved after closing.
Even if the financial results look very similar, buyers may approach these two opportunities quite differently.
The first gives a buyer time to understand the practice, meet clients, build relationships and work alongside the existing owner.
The second may require a much faster transition, with greater uncertainty around client retention and continuity.
That difference can influence the structure of an offer, the amount paid at closing, deferred consideration and in some situations, the valuation itself.
It's something we explored in our earlier article, CPA Firm Valuations: Why Buyers and Sellers Disagree.
A firm's value isn't simply a reflection of its historical revenues. Buyers are also thinking about how much of that business will remain after the current owner has left.
This doesn't mean a firm automatically loses value as its owner approaches retirement. A well-managed practice with a strong team and established succession arrangements can remain very attractive.
But an owner who has very little time left to negotiate or support a transition may have fewer options.
And fewer options can make a difference.
There's some interesting Canadian research on that
Statistics Canada's September 2026 business succession research offers a useful perspective.
Among Canadian businesses planning to sell or transfer ownership within the next two years, 46.5% considered it likely that they would have to accept a reduced value or less favourable terms if they couldn't find a suitable buyer or successor.
The same research found that only about half of businesses intending to sell or transfer within the next decade expected to attract a qualified buyer.
These aren't figures specific to accounting firms, nor do they mean that nearly half of businesses will ultimately sell at a discount.
But they highlight something important about business transitions.
Finding a buyer and finding the right buyer are not necessarily the same thing.
An owner who starts exploring the market early may have more time to compare different buyers, understand their plans and decide which opportunity makes the most sense.
Someone who begins the process only when they're ready to leave may not have the same flexibility.
Two years gives both sides time to get comfortable
One of the things we like about early buyer conversations is that they don't have to begin with an expectation of a sale.
An owner might meet a potential buyer today, have an introductory discussion and decide to reconnect six months later.
Perhaps the buyer is interested in expanding into the owner's city. Perhaps they're looking for a particular client base or service line. Or perhaps there's simply a good personal connection and both sides think there could be an opportunity down the road.
Over time, those conversations can become more meaningful.
The buyer gets to know the firm. The seller learns what the buyer is hoping to build. Both sides can start thinking about how a future transition might work.
By the time the owner is ready to retire, they may already have a relationship with someone who understands their business.
Of course, not every conversation leads to a transaction. Some owners will decide to keep their firms. Others may choose an internal succession plan or discover that they want to grow rather than sell.
But having those conversations earlier gives them the ability to make that decision with more information.
And that's rarely a bad thing.
Maybe two years away is exactly the right time
Our conversations with CPA firm owners have changed how we think about succession timelines.
When someone tells us they're planning to exit in two years, we don't necessarily see that as a reason to reconnect in 18 months.
We see it as an opportunity to start understanding what they're hoping to achieve and whether there might be a buyer worth getting to know.
After all, the best outcome isn't always the fastest transaction or even the highest headline offer.
Sometimes it's finding someone who values the business, understands the clients and employees and is prepared to build on what the owner has spent decades creating.
That relationship can take time.
At RSSL Mergers, we're speaking with CPA firm owners and buyers across Canada and the U.S., many of whom are exploring opportunities well ahead of any intended transaction.
And one thing we're increasingly convinced of is that being two years away from retirement doesn't mean you're too early to have a conversation.
It might mean your timing is just right.
