TIPS ON SELLING AN ACCOUNTING PRACTICE
Without doubts, it will always get to a point where every practice will either be sold to a third party, inherited by a heir, or be abandoned. If you happen to want to sell your practice, then it is only shrewd for you to search for the best buyer, and structure the best deal in order not to compromise your years of hard work.
BEFORE LISTING FOR SALE:
• Prepare practice profile for prospective buyers: This should contain explicit details of the accounting practice. Precisely, it should contain executive summary, background information, reason(s) for sale, business premises, products and services, suppliers, client analysis, financial analysis, marketing plan, human resources, operational procedures, prospective buyer’s opportunities, and lots of other convincing information.
• Prepare a deed of confidentiality and non-disclosure: It is crucial that you have a legal advisor that drafts the document to ensure that no prospective buyer discloses or makes use of information obtained during the course of the sale processes that may be detrimental to your business. There should be a confidential agreement between you that wants to sell your practice and every of the prospective buyers interested.
• Fix a selling price for your practice: The selling price is typically determined by your annual gross income adjusted based on the analysis of your client base and fee structure.
LISTING THE SALE:
• Timing: The best periods to arrest the attention of potential buyers are the beginning of every calendar year and before the start of the new financial year. If you intend to sell your practice, it is recommendable to keep it a secret initially.
• Advertising: How you intend to advertise your accounting practice is at your discretion. However, we exist to streamline this process and help you reach out to considerable amounts of potential buyers.
• Respond to queries: It is paramount to meticulously converse with each prospective buyer that responds to your advertisement. This is an effective way to filter prospective buyers and determine the most appropriate buyer for your practice. It is also prevents the divulgence of sensitive information to every prospective buyer.