Advantages of Geography and Size in M&A

Much like real estate transactions, location and size matter in today’s CPA M&A world.

Despite the rise of remote work, geography continues to play a central role in how deals are evaluated. Local relationships drive most CPA firm revenue—trust is built regionally, and referral sources, clients, and market dynamics remain rooted in place.

At the same time, buyers view a firm’s size as a window into its scalability and operational maturity. They want to know: Can this firm support growth? Does it have infrastructure beyond the founding partners? Is the team equipped to handle more complexity?

Based on our considerable experience with transactions, we see the following as being extremely relevant.

Geography

Many acquirers have a target list of locations but often come to the table with only a surface-level investigation and knowledge of the markets they’re targeting.

Sellers must shift the narrative by positioning their market as strategically valuable. They should be ready to explain:

• Demographics – Which industries are growing locally? What’s the client mix?

• Competition – Is the regional market saturated, or is there room for expansion?

• Talent Pipeline – Is there access to qualified professionals?

• Growth Potential – Are there underserved niches, succession-heavy firms, or underserved client segments in the location where your firm already has traction?

Buyers also look closely at how embedded the firm is in its community—relationships with banks, law firms, and centers of influence matter. These “soft assets” can strengthen integration and add real value.

Size and Scale as Strategic Leverage

If geography sparks interest, size helps shape the deal. Firms in the 15- to 30-person range are often especially attractive. At that size, there is typically an infrastructure that includes a firm administrator, delegated responsibilities, a cultural readiness for growth, and conditions for efficient integration.

Firms in the 30–50 range often have even more robust departments, such as CAS, HR, and IT, which facilitate smoother integration and present opportunities for cross-firm efficiency.

Smaller firms, with fewer than 15 people, can still attract strong offers, but they need to demonstrate strategic value, such as niche expertise, a strong referral base, or a clear upside.

Final Thoughts

Geography and size are two of the early screening and long-lasting barometers for upside potential in M&A. We have facilitated transactions where entrepreneurial buyers will accept a smaller platform firm as a strategic entry into a market for them, but the smaller firm will have to bring more than just location.

In this active market, the firms that win are those that pair solid fundamentals with strong positioning. The right geography and scalable size—supported by clear messaging and market insight—can tip the scales in your favor.