A 72% client-retention rate might make an accounting firm owner wince. But that number doesn’t tell the whole story.
Nearly one year after Dillon Business Advisors (DBA) acquired Enterprise Business Solutions (EBS), DBA expected to retain about 95% or more of the acquired firm’s $1.5 million revenue base. The combined firm had fewer clients, but almost the same revenue.
On Who’s Really the BOSS?, hosts Rachel Dillon and Marcus Dillon joined Amy McCarty, DBA’s Director of Operations and co-founder of Collective by DBA, to review the acquisition. The deal closed at the end of September 2025, and the conversation took place a few weeks before its first anniversary.
Their experience offers a practical lesson. Acquisition success isn’t simply about retaining every client, employee, and system. It depends on defining what fits the combined firm and acting when something doesn’t.
Growth was meant to create stability
DBA spent years between $2.5 million and $3 million in annual revenue while moving clients from annual engagements to monthly recurring work. The firm was growing and improving, but it struggled to break through that range.
Their goal of reaching $5 million wasn’t about size for its own sake. A larger revenue base would support positions like Director of Tax, Director of Technology, and Director of Operations. It would also create better career paths for existing employees.
Growth could also reduce client concentration risk. Marcus explained that one DBA client spent more than $200,000 a year and, in some years, close to $300,000. Losing that client at $2.5 million in revenue could significantly impact the firm’s annual profit. At $5 million, the loss would still hurt, but DBA would have more room to adjust.
DBA chose mergers and acquisitions as part of its growth strategy. It first completed a smaller, roughly $600,000 acquisition in the St. Louis market. That deal allowed the team to learn before taking on EBS, which was about two and a half times larger.
That experience helped DBA recognize what made EBS a promising fit.
EBS looked aligned, but the team expected surprises
EBS had healthy profitability, capable employees, strong clients, and services and pricing similar to DBA’s. Its structure could also fit DBA’s Team of 3 model.
Nearly 60% of EBS revenue came from monthly recurring engagements. Before the acquisition, DBA was approaching 80%. The firms’ mission, vision, values, and culture also appeared closely aligned.
Still, Marcus cautioned that buyers “only know so much before the transaction closing.” Documents can show alignment, but daily operations reveal whether it’s real.
So DBA structured the agreement around a range. The purchase terms included an 80% revenue-retention floor and allowed the sellers to benefit if revenue reached as much as 120% through price increases, referrals, or new work. That structure gave both sides a reason to focus on revenue quality instead of retaining every account.
Fewer clients didn’t mean a failed deal
Amy calculated overall client retention at about 72%. Retention among all business clients was around 65%. The rate was much higher for monthly recurring clients, with only a small number leaving because of a sale, consolidation, or price.
Revenue told a stronger story. DBA expected to generate between $1.4 million and $1.5 million from the acquired $1.5 million base during the first year. As Marcus put it, “Same revenue, fewer clients. That’s always a win.”
DBA achieved that result by implementing 5% to 10% price increases for monthly work and about 10% for tax services.
Not every client fit DBA’s model. One real estate client paid roughly $950 to $975 per month, including QuickBooks Online and ADP costs. That was well below DBA’s $1,500 monthly minimum. When another provider offered to do the work for $500, DBA considered a reduced fee but ultimately let the client leave.
The minimum supports a Team of 3, which includes a Client Service Manager, Client Controller, and Client CFO. Without enough revenue, the firm can’t give that team the budget to deliver timely monthly work.
DBA also added better-fit work. Marcus noted that new wins totaled about $10,000 in monthly recurring revenue, helping replace smaller accounts that were harder to serve.
Client fit was only one part of the integration. The next test involved the team.
Clear roles made difficult staff decisions easier
DBA retained five of the seven EBS employees included in its calculation, a 71% retention rate. It also promoted an acquired Client Controller into a Client CFO role leading a pod.
The first employee exit happened within roughly a month. The role and behavior didn’t fit the combined culture, and the mismatch existed before the acquisition. Rachel noted that any departure can make employees quietly wonder, “Am I next?” Leaders need to respond by clarifying remaining employees’ responsibilities and future, not by discussing confidential details about the person who left.
The second exit came close to the one-year mark after tax season, coaching, and assessment. Marcus acknowledged that DBA’s remote environment works well for experienced professionals but hasn’t always been the best place to start a career.
Defined roles gave DBA an objective standard for those decisions. The firm could explain what success looked like for each position and where they needed improvement.
Those standards also exposed differences in how the two firms served clients.
Integration required deadlines and hard cutoffs
DBA aims to deliver at least 80% of monthly financial statements by the 15th. EBS offered similar services, but its delivery schedule didn’t consistently match that standard.
DBA addressed the gap in stages. It first gave the acquired team access to its tax and practice-management systems without disrupting tax season. After tax season, leaders recorded employees completing monthly work, decided which tasks belonged to Client Service Managers or Client Controllers, and used Copilot or Claude, along with reviews by peers in similar roles, to identify gaps and training opportunities.
Technology adoption required a firmer approach. DBA moved EBS from Keeper to Practice Protect, but some employees continued using Keeper because it was still available. Full adoption happened only after DBA removed access to the old system.
The practical lesson is that communication alone doesn’t create adoption. Firm leaders should:
- Define role ownership and service deadlines
- Set clear transition and cutoff dates
- Confirm adoption employee by employee
- Limit legacy-system access to one or two administrators
- Review client fit and minimum pricing before closing
DBA’s next step is to continue firm-wide training on onboarding, tax and accounting workflows, approved tools, and client delivery.
Define success before you sign
An acquisition can create budget, career paths, and protection from client concentration. It can also expose unclear roles, weak processes, and technology habits much faster than organic growth would.
Before signing a deal, write down the standards the combined firm must follow, including ideal-client criteria, minimum pricing, role definitions, delivery deadlines, approved technology, and an acceptable revenue-retention range.
Then be ready to enforce them.
Listen to the full episode to hear Rachel, Marcus, and Amy share the numbers and lessons from DBA’s first year after the EBS acquisition.
Rachel and Marcus Dillon, CPA, own a national, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 28 professionals. Their latest organization, Collective by DBA, supports and guides accounting firm owners and leaders with Streamlined OS, an operating system for accounting firms, mastermind groups, and one-on-one advisory.