1.1.7.2Vertical

Individual & High Net Worth Tax

CPA firms filing complex individual and family tax returns.

Market snapshot

These figures describe Tax Compliance & Preparation (1.1.7), the segment that Individual & High Net Worth Tax sits within — not Individual & High Net Worth Tax on its own.

Market size
~$7.3B
Growth
~0.6%CAGR (2017–22, nominal — effectively flat)
Companies
~19,464 firms
Firms by employee count

97.5% of firms have fewer than 20 employees — 18,975 micro-businesses, below most mandates.

The investable universe489 firms with 20+ employees
20–99
43689%
100–499
408%
500+
133%

Percentages are of the 20+ employee universe. 20–99 and 100–499 are the lower-middle market; 500+ is at scale.

Flat receipts reflect DIY-software substitution at the simple-return end.

NAICS 541213. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Per-return fees, heavily concentrated in the filing season

Key economics

Revenue per firm
$372,779
Revenue per employee
$54,780
Employees per firm
6.8
Recurring revenue
Moderate

returns recur annually, but low-end switching cost is small

EBITDA margin
15–25%
Capex intensity
Low

Characteristics

  • Balanced cost base — payroll is 34% of revenue, leaving room to scale margin without cutting staff
  • Owner-operator dominated — 84% of businesses have no employees and take 31% of revenue
  • Thin strategic-buyer pool — only 13 firms exceed 500 employees; exits skew sponsor-to-sponsor
  • Steep seasonality concentrates revenue and strains Q1–Q2 staffing.
  • DIY software (TurboTax) erodes the simple-return low end.
  • Bundling advisory and year-round services is the main defense against commoditization.

NAICS 541213. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census; U.S. Census Bureau — 2022 Nonemployer Statistics.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Franchise consolidators
  • PE-backed accounting platforms
  • Advisory-led firms moving downstream

What’s driving deals

  • Roll-ups bundling preparation with year-round advisory to smooth seasonality.
  • Software disintermediation forcing scale and differentiation.
  • Franchise networks consolidating independent preparers.

Find Individual & High Net Worth Tax acquisition targets

Search Acquisera’s index for companies classified under Individual & High Net Worth Tax (1.1.7.2) and build a targeted deal pipeline.

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