Questions to Ask Any Seller of an Accounting Practice
When buying an accounting practice you will have a lot of questions, even if you have been in the industry for a long time. You will get the answers to many of these questions during the buying process, but there are some you should ask the seller of the firm early on. If you are buying an accounting practice, below are the most important questions to ask the seller before you sign on the dotted line.
Why are You Selling?
This is perhaps the most important question to ask before buying an accounting practice. Is the seller leaving their practice because they are retiring, or because the business is simply not profitable. Before you buy, you should always know why the seller is selling.
How Did You Determine Your Asking Price?
Valuing a business is one of the most challenging parts of selling a company. You must know how the seller arrived at their asking price so you can determine what price you think is fair.
What Have You Done to Grow the Business?
No one wants to purchase a company that has not kept up with the times. You want to know that the seller has invested in the necessary technology, made ongoing marketing efforts to secure more clients, and offered ongoing education to staff members. These are just a few ways a seller may have grown the business, and you need to know all the steps they have taken.
What is the History of the Business?
You not only need to know where the business is going, but also where it has been. You need to know when the business was first opened, if the business has ever filed Chapter 11 bankruptcy, and if it has been sold in the past. Knowing the answer to these questions will help you understand where the business has been, and where it is going.
What Challenges Do You Face in the Business?
After buying an accounting firm, you can run it in any manner you choose. However, if the current owner faces certain challenges with the business, there is a good chance you will too. You need to know what those challenges are so you can prepare for them ahead of time.
Are There Key Suppliers, Employees or Clients?
Every business relies on key individuals to be successful. Perhaps there is a staff member that is responsible for the daily operations, or perhaps there is a client that brings in a great deal of business. You need to know what key players are part of the business so you can better understand their role and how important they are to the firm.
Call Our Washington Business Brokers Today
If you are purchasing an accounting practice, do not hesitate to call our Washington business brokers at Private Practice Transitions. We will answer any questions you may have, and will also make sure to get the most pertinent answers from the seller. Call us today at (253) 509-9224 or contact us online to schedule a meeting with one of our brokers and learn more about how we can help.