How to Buy a $400K Accounting Firm for $20K Out of Pocket

SBA loan broker Eric Rabinovich joins Marcus and Rachel to break down what actually gets a bank to say yes to a firm acquisition, from debt service coverage ratios to the rule changes taking effect October 1st. They work through real numbers, including how a $400,000 firm can close for $20,000 out of pocket and why existing firm owners can sometimes finance a deal with no cash down at all. Connect with Eric linkedin.com/in/eric-rabinovich-deals, sbaloanlab.com calendly.com/eric-sbaloanlab. Introducing Collective by DBA https://collective.cpa https://www.linkedin.com/company/collectivebydba Learn More About Dillon Business Advisors https://www.dillonadvisors.com https://www.linkedin.com/company/dillonbusinessadvisors Sign up to get free CPE for listening to this podcast https://earmarkcpe.com Download the Earmark CPE App Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728 Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app (00:00) - Welcome and Guest Intro (01:10) - Eric’s Background and Passions (02:29) - Best Advice Don’t Nibble (04:08) - Why M&A Is Heating Up (06:41) - Eric’s Niche Small Firm Deals (11:27) - Should You Acquire to Grow (19:04) - Marcus’s Acquisition Journey (22:03) - Funding a First Acquisition (25:44) - Prepping to Buy (26:45) - Deal Structure Basics (27:32) - Winning in a Sellers Market (29:28) - Educated Buyers and Rollups (32:50) - What Banks Underwrite (34:15) - Debt Service Coverage Math (39:05) - Scaling with Acquisitions (41:34) - Expansion Rules and 100 Financing (44:56) - Alternative Practice Plays (47:28) - Action Steps and Resources (52:56) - Closing and How to Reach Eric