Family Office of America
Business Model
• Acquisitions of CPAs:
◆ Objective of a minimum of 25% return, before for growth and before any leverage on the purchase.
◆ Financing from sellers or financial institutions.
◆ Adding family office services expands the profitability significantly.
• Provide the Family Office structure and services to CPA firms without ownership of the CPA:
◆ CPA receives profits from an LLC owned by Family Office of America Inc. This is a way for the CPA to benefit from wealth management without being directly involved.
◆ The CPA provides CFO services to clients and others provide the family office services.
◆ Very high returns as no capital is involved. Use a sales team to recruit the CPAs
Overview of CPA Industry
• In 2024 there were 52,000 CPA practices in the U.S. generating $132 billion in revenues (vertical IQ).
• About 90% of firms have less than 20 employees.
• An additional 34,900 establishments are owner-operated with no employees. These solo accountants generate $2.2 billion in annual revenue (Gemini)
• 75% of CPA are of retirement age from the AICPA.
• AI will become a growing necessity to process the volume needs in accounting.
• Because of the shortage of CPAs pricing is very favorable for services.
• CPA firms trade for around 1.0 revenues or 3 times EBITA.
• Family Office Services are an unlimited growth opportunity for CPAs that can put the infrastructure in place.
• The growth opportunity for Family Office of America is vast.
• Private equity is entering the space with a vastly inferior model focused on larger practices that are difficult to operate.