Buying a tax or financial services firm in Orlando and Central Florida

• A high share of last year's clients coming back, and records that show it.
• A mix of individual and business clients. Business returns and monthly bookkeeping are usually worth more and last longer.
• Preparers besides the owner whom clients trust and who plan to stay.
• Credentials that fit the work, such as enrolled agents or CPAs for clients who need representation before the IRS.
• A clean record with the IRS: no preparer penalties and few rejected e-filed returns.
• Secure, modern systems: a client portal, multi-factor logins and a written security plan.
• Prices that have kept up with the work.

• Retention. Returns filed each year, and how many clients came back after any past change of preparer.
• Cash flow. Revenue by month, and whether the business covers its costs from May to December.
• Transition terms. Many deals tie part of the price to how many clients come back, with the seller working through a filing season. Ask your attorney and lender how that fits your financing.
• Compliance. Preparers face extra due diligence rules and penalties on returns that claim the earned income credit and some other credits. Ask about IRS visits, letters or penalties.
• Data security. Any breaches or stolen client data, cyber insurance, and whether the security plan is real.
• Software. Whether the tax software licenses and client data can move to you, and what any bank products tied to refunds depend on.
• Seasonal staff. Whether trained preparers will return next January.

• How many returns did you do in each of the last few years, and how many clients came back?
• Which clients deal with you personally, and how would you introduce them to me?
• Would you stay on through one or two filing seasons?
• What software do you use, and can the licenses and client data come over to me?
• Have you ever had an IRS penalty, compliance visit or data breach?
• How much of your revenue comes from bookkeeping and payroll outside tax season?
• When did you last raise prices, and how did clients react?

This region covers Orange, Seminole, Osceola, Lake, Sumter and Marion counties: Orlando, Winter Park, Kissimmee, St. Cloud, Sanford, Clermont, Leesburg, Ocala and the large retirement communities of Sumter and Lake counties. Tourism is what the area is best known for, built on the theme parks, the hotels, the vacation rental homes around Kissimmee and the Orange County Convention Center. It's far from the only business. The University of Central Florida and the military simulation and training offices near it support a technology base, and health care is a major employer.

Marion County is horse country, with thoroughbred farms around Ocala, and it has added warehouses and distribution centers along Interstate 75. Retirees in Sumter and Lake create steady demand for medical practices, home care, home maintenance and auto services. The building trades, restaurants, and companies that serve hotels and rental homes do well across the region.

Central Florida is inland, so storm surge isn't the worry it is on the coasts. Hurricanes still bring wind damage and flooding, though: Hurricane Ian flooded neighborhoods in Orange, Seminole and Osceola counties in 2022. Ask whether the business or its customers were affected.

Tourism keeps demand steadier through the year than in markets that depend on winter residents, with busy stretches around school holidays. Hotels, parks and restaurants compete hard for workers, which pushes up wages for any company that hires hourly staff. New homes have spread fast in Osceola, south Lake and southeast Orange counties and around Ocala, so check whether a company's customers are in growing areas or older ones. Traffic on Interstate 4 limits how much ground a service company can cover in a day.