Five Things to Look for in an Accounting Business for Sale
By: Justin Farmer
When making any type of business acquisition, there is much to consider, and that is certainly true when acquiring an accounting practice. Many people do not know where to start looking for an accounting practice for sale, and searching the local classifieds is not always enough. Websites such as BizQuest, BizBuySell, and PrivatePracticeTransitions.com are a great place to start. Once you find an accounting practice for sale that you think may be a good fit, you then want to make sure that it has the five essentials listed below.
Location
Accounting businesses typically have repeat clients and referral sources, so they do not rely on walk-in traffic. However, the location of the accounting business for sale is still important. You want to ensure that the practice is well-established and that it has “roots” in the community. This is an indication that the business is stable, and will also show current clients that even though the ownership may change, little else will.
Client Retention
One of your top priorities when you buy an accounting practice should be the type of clients and services that are provided. Is the practice focused on individuals? Businesses? Audit? Perhaps a mixture? Does that fit with your career goals and match your ideal client mix? Also, ask how often the business meets with clients. If it is only once a year, then you will want the previous owner to remain on at least one year to ensure a warm handoff of those client relationships, while firms that meet with clients quarterly or monthly will make it easier to help existing clients through the transition.
The Transition Period
The current owner may want to play a large role in the business during the transition period after you buy an accounting firm. They may want to offer advice and information on certain clients and what they need or provide insight into certain processes. You may find this helpful, or you may not, so you need to determine how involved you would like the previous owner to be in the firm once you are officially the new owner.
The Financials
The most important factor to consider when looking at accounting practice for sale is revenue and cash flow. In short, how much money does the firm make and when does the money come in? This will tell you how profitable the business is, whether there are any negative cash flow months, and other key performance indicators that are essential to know when taking over a business. When you buy an accounting firm without first looking at their financials, you are essentially buying it blind.
Technology
It is hard to believe, but some accounting firms still use mostly paper documentation, or they rely on outdated platforms that are no longer efficient. This will not only make operations more difficult once you take over, but it will also cost you more in the end as you will have to invest in new technology that will serve you and your clients better.
Our Washington Business Brokerage Can Help You Find the Right Accounting Business for Sale
When you want to buy an accounting firm, you should not do it alone. At Private Practice Transitions, our Washington business brokers can help. We will ensure that you understand all of the most important aspects of any business you want to buy, and that the transaction proceeds as smoothly as possible. When you need help buying an accounting firm, call us at (253) 509-9224 or contact us online to learn more about how we can help.
Want to Buy a Law Firm? Read This First
By: Tanya Farmer
Whether you are venturing out on your own and plan to start your own law firm, or your current firm is expanding, you may be thinking it is time to buy a law firm. Buying a law firm is a bold move and one of the biggest decisions you will make in your career, so it is important to first consider a few important factors. Below are some things to keep in mind when it is time to start searching for a law firm for sale.
The Right Time to Buy
Of course, you want to take market conditions into consideration when planning to buy a law firm. However, you also have to consider whether now is actually the right time for you to buy. It takes a certain amount of confidence and business savviness to run a successful law firm, so you need to understand your strengths, and weaknesses, in order to set yourself up for success. You also have to consider if you or your team can handle the additional workload, responsibility, and risk that will come with the increased revenue.
Perform Your Due Diligence
Valuing a law firm is not easy, but when done correctly, can provide a great roadmap of the benefits buying the firm will have. To determine how much a legal practice for sale is worth before purchasing, you should review the following to start:
- Financial statements for the past three (3) years, including tax returns, profit & loss statements, and balance sheets
- Billable hours, and rates, by employee
- Salary history of at least three (3) years for any employees that will be retained
- Compensation and employment agreements
- Lease agreements
These are just a few of the important documents you should have in order to properly value a business. An experienced professional can help collect and analyze due diligence materials to ensure that you aren’t missing any other important documents that can help with the evaluation.
The Firm’s Culture
There are many different cultures among law firms. Some have high employee turnover while others have mostly tenured employees. Some firms prioritize repeat clients, while others concentrate more on marketing for the future. You may already know the practice and the partners, but if you do not, you should get a feel for the firm’s culture throughout the entire purchasing process. This will help you determine whether the culture is a good fit for you, if you will need to make changes, and if it is worth it to make those changes.
A Plan for the Transition
Early on in the due diligence process, you and the attorney from the law firm for sale should create a documented plan for the transition. This should include certain timelines and transition goals that will keep both sides on track throughout the process. This will help streamline the sale and avoid any potential problems.
Speak to a Business Broker
As an attorney, you know a lot about the law, and you may even have a basic understanding of how to buy a law firm. However, you still should not do it alone. At Private Practice Transitions, our Washington-based business brokerage can help ensure the entire transition goes smoothly, and that you end up with the law firm that is right for you. If you are considering purchasing a law firm, call us today at (253) 509-9224 or contact us online to learn more about how we can help.
How to Know if a Professional Business Broker is Right for You
By: Justin Farmer
You may already know that when selling your business, business brokerage firms can be quite helpful. Experienced business brokerage firms will screen qualified buyers and help you through the many obstacles you may encounter when trying to complete your sale. In the meantime, you can remain focused on running your business before the sale is final.
The question then, is not whether or not you need a business broker, but how to find the one that is right for you. Below are three ways you can ensure the broker you choose will help, not hurt, the sale.
1. Check a Business Broker’s Credentials
Hopefully, you will speak to several business brokerage firms when trying to find one to sell your business, and you should both check credentials for the broker you will be working with and request to speak with client references. Any firm that is going to help sell your business should have brokers with the Certified Business Intermediary (CBI) certification from the International Business Brokers Association.
Also ask any business broker you speak to how many businesses they have sold in the past year, and how many listings they currently have. This will allow you to determine if they have a good track record, and if they will have the time necessary to devote to helping sell your business. You can also look for firms that specialize and, thus, extensive experience selling your type of business since selling a professional service company, such as a law or accounting practice, is not the same as selling a widget factory or restaurant.
2. Make Sure the Firm Understands Your Needs
You may want to sell your business, but it will still be an emotional time for you. You need to ensure that the business broker you choose will understand your needs and goals, and why you are selling your business. This will allow them to create a marketing strategy that is right for you and your situation. You will also need to review the strengths and weaknesses of your business with the broker, so you will need to feel comfortable with them and be able to place your full trust in them.
3. Make Sure the Firm Outlines Their Sales Strategy
There is a reason you are choosing a brokerage firm to sell your company for you. The firm should have extensive experience marketing businesses, locating buyers, and then vetting each buyer to ensure they are a good candidate for a business.
Always ask any business broker you speak to about advertising strategies, what dynamic and static marketing activities they utilize, and the effectiveness of those strategies. The brokerage firm you choose should use a wide variety of resources within their advertising strategy, including both online and offline tactics to find the buyer you need. Also ask about the firm’s screening process and how it narrows potential buyers down to serious prospects, including how the firm will protect your confidence when speaking to prospective buyers. When performed effectively, advertising your business for sale means you will share confidential details of your business with more qualified buyers, which is important.
Call Our Business Brokerage Firm to Get the Help You Need
If you are selling your business, our business brokerage firm, based in Washington, can help. At Private Practice Transitions, our brokers hold CBI certifications and have the experience necessary to ensure the sale of your business goes as smoothly as possible. Call us today at (253) 509-9224 or contact us online to learn more about how we can help.
CPA Practice for Sale! Tips for a Successful Purchase Process
By: Tanya Farmer
If you have an accounting business for sale, you are likely concerned about how the sale will proceed and if the sale will ultimately be successful. The good news is that there are many resources available to ensure the sale is a success and to make the entire process much easier for you. Below are a few helpful tips to keep in mind if you have a CPA practice for sale.
Time it Right
Too many owners of accounting firms go into business thinking that they will sell their businesses when they hit retirement age and can start receiving federal retirement benefits. However, there are many other factors to keep in mind before listing your accounting business for sale. Consider your physical health, your financial situation, your practice’s current financial status, and any family concerns before you make a big move.
There are peak times at which to sell an accounting business, and those may not align directly with your own personal life plan. If you do not sell your business when the market is at its peak, you could be leaving money on the table, or lose out on the sale altogether. Waiting until retirement is not always the right answer, and sometimes, it may be more beneficial to sell sooner. You want to make sure to sell your business when it’s at its financial peak – not once you’ve slowed down your practice as you reduce your work hours preparing for retirement. In short: do not Retire In Place!
Make a Good Impression
It is true that potential buyers need to make a good impression on you, but you also need to make a good impression on them. After listing your accounting business for sale, buyers will come to look at your office. Make sure the lobby and front areas are clean and organized, as well as the individual offices. Make sure that your facilities and staff will make a good impression. This also means making sure you have the most up-to-date accounting software, records, and client and employee agreements all ready to show prospective buyers.
Enlist the Help of a Business Brokerage Firm
There are many unknowns when you have a CPA practice for sale, and that can make it a difficult process to navigate on your own. Our Washington-based business brokers at Private Practice Transactions can give you the best chance of avoiding common pitfalls. We know how to properly screen prospective buyers, prepare your firm for sale, and give you the best chance of success with the final transaction. If you are thinking of selling your accounting firm, call us today at (253) 509-9224 or contact us online to learn more about how we can help with your sale.
Steps for Buying a CPA Firm
By: Justin Farmer
There are many reasons you may want to buy a CPA firm. One of the main reasons many CPAs buy an existing firm is simple: purchasing an accounting firm that is already up and running is much easier than starting one from scratch. Buying an existing firm, along with existing operations, also minimizes the risk associated with starting a business because the firm will (a) have existing clients (and therefore work in progress and accounts receivable), (b) have an existing space and infrastructure in place (phones, email, server, filing systems, and the like) and, last but certainly not least (c) have existing staff members. These are just a few of the most critical aspects of any accounting firm and, when combined, create an opportunity that simply is a safer bet than starting from scratch.
Still, you must follow the proper steps before purchasing any firm to ensure it is successful, and a business brokerage can help. Below is a quick summary of the most important steps you should consider:
Look for Firms with Retiring Leaders
When accounting firm leaders are nearing retirement age, they are also often considering selling their firms. Identifying these firms early and establishing a relationship with the leaders is a great way to get your foot in the door, and increases the likelihood they will be ready to negotiate a deal when the time is right.
Focus on Profitability
When buying a business, too many people focus on how much revenue the firm has, instead of how profitable it is. Revenue is important, but it is also important to investigate where that revenue is going. Is there a lot of overhead and expenses eating into that revenue? If so, that revenue may not be as beneficial as you think. Also consider how you can make the firm even more profitable in the future. This can help ensure you are purchasing a firm that has room to grow.
Make Sure There is Chemistry
To move in as the leader of an accounting firm, it is important that you and the clients both feel comfortable. Determine if there is chemistry with the existing clients and if your vision and expectations align. Determining if you have chemistry with the outgoing owner can be helpful with this. He/She likely has chemistry with his/her clients and if you have chemistry with the owner, you will also likely feel that with the client base.
Ask for a Familiarization Period
Purchasing a firm without first familiarizing yourself with the clients and processes is risky and could lead to many problems. Ask the owner for a familiarization period so you can see how the firm is currently being run, meet some of the clients, and have the chance to ask all the questions necessary to make you feel comfortable.
Contact a Business Brokerage to Help
When buying any professional firm, you should not do it alone. There are many things that can go wrong, and a Washington brokerage firm can help ensure those things do not happen. At Private Practice Transactions, we will assist with the purchase of your new firm and make sure the entire transaction goes as smoothly as possible. If you are thinking about buying an accounting firm, call us first at (253) 509-9224 to learn more about how we can help.
Succession Versus Sale
By: Tanya Farmer
In the most recent issue of the Oregon State Bar Bulletin, Lee Wachocki provides great strategic insight into the option of choosing a successor rather than selling your practice. Our very own Justin D. Farmer contributed to the article, titled “Sales Isn’t The Only Option.” You can read the full piece by clicking here. Following is our own synopsis and comments:
Frankly, not every private law practice can be sold. There are several factors that impact transferability, but “retiring in place” is often the biggest culprit. Some attorneys find this out the hard way as they near retirement age and are unable to find a buyer for their firm. If you are the most valuable asset of your small law firm, then you may also be experiencing this difficulty and wondering what to do.
Consider finding a successor for your practice, rather than a buyer. If you properly integrate your successor into the practice (think ownership from the outset or a very clear path to ownership), then over time you will be afforded an easier transition into retirement without needing to worry about the future of the business you have built.
Without a doubt, the true assets of your firm are its intangible assets, meaning the goodwill you have built, the loyal client base, and your firm’s name recognition. While your tangible assets (desks, computers, and the like) have some value, that is not truly what a buyer is looking for. Thus, you lose out on the intangible asset value when you retire abruptly. Thus, putting a succession plan in place whereby you gradually transfer the goodwill to another attorney will help ensure the success of your business for years to come.
So, how do you choose the right successor to take over your small law firm? Look for someone who you trust and who is interested in running a business, not just practicing law. Just like any other courting process, identify the attributes that will signal success: amazing work ethic, impeccable references, strong writing skills, and the right personality/temperament for your clients. Make sure your successor’s philosophy of law practice aligns with your own to maintain the integrity of the mission of your firm. Once you have narrowed down your field of finalists, consider giving your top choice a trial run. Bring them in on a case as a contractor or consultant. If it does not seem like a good fit, move on realizing that you have not committed to this person for the long term.
Once you have chosen your successor, you can begin your transition into retirement – but do so slowly. Abandon your traditional notions of what this should look like. Every practice is unique, and every transfer of ownership to a successor will be unique, too. Get some outside advice as you put together your succession agreement and work with your successor to come to terms on what your ultimate compensation will be. There are no hard and fast rules here, and having an experienced professional assist you in drafting these contracts will make the entire process run more smoothly.
Your small practice means the world to you because you built it with your own two hands. Do not give up hope because you are having a hard time finding a buyer. Transition slowly into retirement by handing operations over to a successor who can carry on your legacy. With the help of trusted professionals like those at Private Practice Transitions, you can make this transition gracefully, and enjoy peace of mind.
Why do I Need a Business Broker to Buy a Company?
By: Justin Farmer
Purchasing a business is a huge investment. It is definitely not something that can be done on a whim, or without the necessary experience and knowledge backing up the purchase. There are many things you must take into consideration when buying a business, and this is why so many buyers choose to work with a business broker before the sale is final. Business brokers bring many benefits to individuals who are looking for a company to purchase, including those listed below.
A Business Broker Will Know What Companies are for Sale
Perhaps you already know the exact business that you want to buy, but maybe you do not. Maybe you simply know that now is the right time for you to make an investment. When the latter is the case, a business broker will have inside knowledge about what companies are for sale, and which one will fit your needs and wants. Even if you are purchasing a franchise, you should still speak to a business broker who will help you whittle down the list of thousands of franchises to find the one that will work best for you.
A Business Broker Will Know What Companies are Worth Your Investment
Just because you buy an existing business does not mean that it is automatically going to be a success. Business brokers do not only know what companies are for sale, they also know which ones are successful and which ones are on the brink of failure. You do not want to make such a huge investment only to learn soon after the agreement is final that the business is about to fail. You will only end up spending your time trying to fix what has gone wrong, and there is no guarantee that those measures will work, either.
Business Brokers Understand the Legality of the Purchase
There are many legal considerations to think about when buying any company. You will not only need to ensure that the initial offer is structured properly, but the rest of the deal is, as well. You will need to draft certain contracts properly, ask for the proper tax documents, and more. A broker will understand what this is and ensure your rights are protected, and that you do not face any liability shortly after the sale.
A Business Broker can Help With Financing
The chances are that you are not going to purchase any company with your own cash, so you will need to secure financing in order to do it. A business broker can help you determine what financing options are best for you, and will help you secure it so your purchase goes as smoothly as possible.
Call Our Washington Professional Business Brokers for the Help You Need
Now that you understand all the benefits a professional business broker in Washington can bring, it is time to find the right one for you. At Private Practice Transactions, we have the experience necessary to help you with every step of your purchase and make sure your new company is the success you have been envisioning. Call us today at (253) 509-9224 to learn more about how we can help.
How to Determine What My Law Firm is Worth
By: Tanya Farmer
You have worked hard and built your law firm into something that you are immensely proud of and that you value a lot. When it comes time to sell your firm however, it is not the value you place on it that matters. You need to determine how valuable potential buyers will find your firm because that is what you will ultimately receive for it. While you may think it is going to be difficult to ignore your own emotions when evaluating your law firm, there are a few factors you can use to help you step back and really see how much your firm is worth.
Concrete Factors to Consider When Evaluating Your Law Firm
There are some concrete factors to consider when placing a value on your law firm. These factors include actual dollar figures that can help determine how many assets and liabilities your law firm has, how much it pays in overhead, such as in property taxes and payroll, and more. Using these figures is a good place to start when determining how much your law firm is worth because they are definitely stats and numbers potential buyers will want to see. To determine the value of these factors, you will need to use several different documents including:
- Financial statements
- Tax returns
- Titles to assets
- Banking records
- Debt agreements
- Lease agreements
- Insurance policies
- Payroll
You already know that there is more that goes into the value of a law firm than just these factors, but they are certainly a great place to start.
Other Factors When Evaluating Your Law Firm
When selling your law firm, buyers are not only going to look at the firm’s financial documents, they will also look at other factors of value. These will include:
- Client lists: Although there is no guarantee that your clients will stay on with the new buyer, there’s a very good chance they will. A substantial client list also tells the buyer that they are purchasing a reputable law firm, which adds to its value.
- Staffing: Much of the time, your staff will stay on with the buyer, particularly if you are retiring or getting out of the industry. When you have sufficient staff and they are knowledgeable, friendly, and helpful, that also increases the value of your firm.
- Reason for the sale: Certain reasons for the sale, such as retiring or relocation, will not decrease your firm’s value. However, if buyers feel as though you just need out, particularly if that need is urgent, they may wonder why that is and it could hurt your ultimate sale price.
Finding a Buyer
Of course, determining the value of your law firm is only part of the battle of selling. You also need to find a buyer willing to purchase it for the amount you would like.
Fortunately, there are many ways to find the right buyer. Many attorneys simply rely on word of mouth. The legal community is often a small one even in the biggest cities, and by telling a few people within it that you want to sell, word often gets around.
If you do not receive a lot of interest when relying on word of mouth, you can also post an announcement in your local and state bar newsletters. Lawyers often read these regularly and so, if someone is thinking of purchasing an existing firm, it may help you with your sale.
Lastly, you can also always go online to find your perfect buyer. Post an announcement on your own website or blog or even post about the sale on websites such as Craigslist. This will tell thousands of people about the sale with just one ad.
Get Help from a Washington Professional Business Broker
If you are thinking about selling your law firm and need help evaluating it or finding a buyer, our professional business brokers in Washington can help. At Private Practice Transactions, we can help with every aspect of the sale and ensure that it goes as smoothly as possible. Call us today at (253) 509-9224 to learn how we can assist with your sale.
How to Buy a Law Practice
By: Justin Farmer
Whether you have started a law practice and are looking to expand rapidly, or are thinking about leaving a large firm and venturing out on your own, buying a law practice – buying a business – may be right for you. Regardless of where you are in your career, it is much easier (and more cost effective) to buy a law practice than it is to start one all on your own. Many attorneys do not even consider purchasing a law practice because they don’t realize they can, and/or they don’t know where to even start with the process. However, buying a law practice is both possible and a great avenue to pursue for the savvy business person. Below are a few things to consider if you are thinking about starting your own practice.
Find Law Practices for Sale
You can’t purchase an existing law firm if you can’t find one for sale. Unlike real estate, you won’t find a “For Sale” sign outside of a law firm, even when the owner(s) of the firm want to sell their practice. So, how do you find a firm that you can purchase? One organic path is to network with older attorneys who may be looking towards a transition in the near future. You will know them by their gray hair. You can also look in registries created for this niche, such as the one found on the Private Practice Transitions’ website. Registries of this kind are created by experts who are available to answer your questions. If you’re just doing initial research, BizBuySell has been known to contain listings of law practices for sale in the past, though obviously the platform doesn’t provide any support beyond the listing.
Consider the Practice Type, Client Base and Branding
Of course, you do not want to buy a commercial law firm if your area of practice is personal injury law. You need to first consider your long-term goals, what type of attorney you want to be, where you want to practice, and in what area or areas of law to ensure that you target the firms that most align with your experience and goals. If you do not yet have an area of law to which you have dedicated your practice, consider your personality, your interests, your values, the learning curve to be successful in a certain type of law, and, honestly, whether you have the dedication and drive to absorb a new practice focus.
Similarly, it is important to review the firm’s existing clients to gain an understanding of the needs being met and whether those clients seem like ones with which you would have good chemistry.
Do Your Due Diligence
Due Diligence can, and should be, extensive. You should review financials, tax returns, cash flow projections, and meet with each owner and key staff. While making the decision to purchase a firm is important, due diligence will be the most time-consuming and enlightening step in taking over a practice. When conducting your due diligence, it is important to assemble a purchasing team, to include your financial advisor (how will the purchase of the firm help you with your long-term financial goals?), your CPA (what are the tax benefits of purchasing a law firm?), and an advisor who can help you with deal structure (asset purchase versus stock purchase versus asset purchase treated as a stock purchase?). These professionals will be able to help you request and review the relevant seller-provided materials and documentation. You will then be able to utilize this information to draft a final purchase agreement so that you can move forward with the acquisition and proceed with closing.
Create a Transition Plan
After the sale, there will be a transition period. Think of it as a new business and, with that new business there must be a business plan. So while the transition occurs after you purchase the practice, planning for that transition should occur before (i.e. during due diligence). This plan should include a detailed (yet organic, as things change) checklist of items that you will need to work through, including (a) production (who will be responsible for what work and at what level moving forward?), (b) firm management (hiring, firing, vendor management, lease negotiations, technology, and marketing plans), and (c) “all the things” that the old owner was responsible for, but now you will be taking care of. However, it also must be flexible enough to adapt to the changing business environment. During this phase the seller should transfer the knowledge base, key clientele, referral networks, and other elements to give you the best chance of success in your new firm.
Contact a Washington Brokerage to Help
When purchasing a law firm, you should not do it on your own. At Private Practice Transitions, we are the pre-eminent professional services brokerage in Washington. We will ensure you have the support and guidance that you need during the purchase and sale process. If you want to buy a practice so you can lead your own law firm, call us today at (253) 509-9224 or contact us online to learn more about how we can help.
How to Sell an Accounting Practice for Top Dollar
By: Tanya Farmer
Baby Boomers are retiring en masse across all industries. And while the majority of accounting firm owners are baby boomers who are near the age of retirement (65 or older), just as many younger professionals are coming of age and seek to run their own businesses. For the former group, whether you want to retire, semi-retire (perhaps you just want freedom to travel without firm administration hanging over your head), transitioning the ownership of your firm should be high on your list of priorities. If you are asking, “How can I sell my accounting practice and get top dollar?” you will want to consider the tips below.
There is a Buyer for Every Size Accounting Practice
While the buyer universe is larger for smaller practices (less than $500,000 in gross revenue), there is a buyer for every size practice. With zero-down (yes, no money down) conventional financing options up to $1.2 million, the market for buying and selling any size practice is hot. We have found that, generally speaking, the buyer of a smaller practice is often looking for a “merger of equals”, meaning their firm is roughly the same size. Of course, larger firms also look to smaller practices, as it is often a less time-consuming task to absorb the work, provide notice to clients, manage the staff needed to ramp up production and, in general, integrate the practice. A larger practice (more than $500,000 in gross revenue) offers its own unique selling features as well. Often a larger practice will have more, and tenured, professional staff and stronger systems in place. In truth, a large part of the value of a firm, large or small, in today’s virtual 0% unemployment market, are the people employed who will join the acquiring firm. Whether you are the owner of a large or small accounting practice for sale, it is important to prepare now for your transition. Speaking to a professional business broker can be the best first step.
Continuity of Client Relationships Increases Value
Selling an accounting practice is not like that of a widget factory. A widget factory owner does not need to transition the widgets; they are simply sold. With an accounting practice, relationships, and goodwill from the same, is what is transferred. As such, in order to obtain top dollar, and ensure clients will remain with the new owner, remaining on as an employee or consultant will dramatically increase the value of your firm. We have found that, when the former owner remains involved in some capacity for a reasonable period of time, the acquiring firm experiences a nominal (the normal yearly level) of client attrition.
As such, you will need to consider the cultural fit of the acquiring firm (or personality of the individual buyer) to ensure that there are enough similarities. This will ensure clients stay even after you go, and will make it more comfortable for staff members involved in the transition.
Understanding the Buyer Market
As an accountant, you are intimately aware of the busy seasons. Accordingly, going to market immediately after the April 15th deadline is best. You will get the most interest, have the most time to be selective and vet a buyer, and also ensure that you are not putting yourself in an untenable transition plan. Keep in mind that putting a deal together can take several months, so you will be nearing the busy season (again) come closing of the transaction. More importantly, when you sell your accounting practice just before your most profitable cycle, the buyer can hit the ground running, realize a quicker return, and, therefore, be able to service any debt more easily.
Modernize Systems and Technology
Systems and technology are rarely the main selling point of a practice, but they certainly impact value. Imagine that a new owner can “hit the ground running” with your electronic filing system, that your accounting software is backed-up to a server and notice to clients can be automated. That is a huge selling point in that it paints a clear picture to the new owner about how quickly the transition can occur with minimal staff and client interruption. Conversely, if you are still hosting outdated accounting software and have not gone paperless, you will want to strongly consider upgrading before the sale. Older technology tells buyers that they will have to work harder to achieve the profitability they seek. However, if you invest in cloud accounting software or tax management technology, it demonstrates to buyers that you are able to conduct business quickly and efficiently. This means that the buyer will benefit directly as well.
Call a Brokerage Firm for Help
In addition to the tips above, if you are still wondering, “How can I sell my accounting firm?” consult with a Washington business brokerage that specializes in professional service company sales. At Private Practice Transitions, we can accurately estimate the value of your business, search for and interview potential buyers, help secure financing, and ensure a seamless transition occurs.
If you are selling your accounting firm and want to get the best deal possible, call us today at (253) 509-9224 or email us at [email protected] to learn more about how we can assist with the sale of your practice.