For accounting business owners considering their exit strategy, understanding what makes a firm attractive to buyers can feel overwhelming.

Buyers prioritize factors like recurring revenue, a differentiated service offering, and a leadership team that operates independently from the owner. If a firm doesn’t check every box, it can seem as though selling is perpetually just out of reach.

However, perfection is not a prerequisite for a sale. While improving the key drivers of value is important, an imperfect business can still be highly desirable to the right buyer. In fact, some acquirers actively seek firms with fixable flaws because they see an opportunity to increase value.

Blake Hutchison on Why Imperfections Can Be to an Acquirer’s Advantage

Blake Hutchison, CEO of Flippa, has witnessed thousands of business acquisitions. Flippa is an online marketplace where business owners can buy and sell companies, particularly small to mid-sized digital businesses. The platform connects sellers with buyers looking for opportunities to grow or optimize an acquisition.

In a recent Built to Sell Radio interview, Hutchison explained that many business owners assume their company won’t attract buyers because it has shortcomings. In reality, most acquirers aren’t looking for perfection—they’re looking for potential. Many buyers have a strategic advantage, whether it’s a strong client base, operational expertise, or access to capital, that allows them to take an imperfect business and make it more valuable.

A prime example of this is the acquisition of PetCoach.

How PetCoach Turned an Imperfection into a Selling Point

PetCoach, co-founded by Brock Weatherup, was a two-sided marketplace designed to connect pet owners with veterinarians. The challenge for any marketplace business is keeping both sides in balance—generating enough demand from pet owners while ensuring there are enough veterinarians to meet that demand.

PetCoach had built a strong product, but it lacked a broad distribution channel to acquire pet owners at scale. Without a solution, growth would remain limited. Instead of seeing this as a dealbreaker, Weatherup positioned it as an opportunity for the right buyer.

That buyer was Petco. With more than 1,500 locations across the U.S., Mexico, and Puerto Rico, Petco had access to millions of pet owners. By acquiring PetCoach, Petco could instantly expand its offerings while solving PetCoach’s biggest challenge.

Weatherup didn’t need to fix the scalability issue before selling. He needed to find an acquirer for whom the business’s weakness was actually a competitive advantage.

Your Accounting Firm Has Value—Even if It’s Not Perfect

This doesn’t mean accounting business owners should ignore the fundamentals of value creation. Strengthening factors like recurring revenue, client retention, and operational efficiency will always increase a firm’s attractiveness. However, not every issue needs to be resolved before an exit.

Instead of viewing imperfections as obstacles, accounting firm owners should consider how an acquirer might perceive them:

• A firm struggling with client acquisition may be a great fit for a buyer with an established client base.
• A practice with inefficient operations might attract an acquirer with expertise in streamlining processes.
• A firm overly dependent on its owner could be appealing to a buyer with a strong leadership team ready to step in.

As Blake Hutchison explains, acquirers are often looking for businesses where they can add value. The key is to position your firm in a way that highlights its strengths while framing its imperfections as untapped potential. The right acquirer won’t see weaknesses as dealbreakers—they’ll see them as opportunities.

To grow your bookkeeping business or increase the value of your firm, consider connecting with Universal Accounting’s team of experts at 435-344-2060.