It takes years to create a solid and successful accounting firm. After all, your investment involves more than just education and dedication. It also involves networking, accountability, management, time and effort.
The components will directly impact your decision to make big changes, like selling or merging an accounting practice.
Why Make a Change?
What is your motivation for selling or merging an accounting practice. Are you overwhelmed with high turnover rates and limited resources? You might be inundated with a large client base but lack the staff to accommodate the demand.
In such instances, selling or merging an accounting practice with another could alleviate the burden. After all, merging allows room for growth and education.
Or perhaps you no longer want to be in the industry, or want to retire and don’t have a successor. Should you cut ties and sell up?
In order to determine if you’re ready to sell or merge, there are a few crucial steps to consider.
Step 1: Evaluate the situation
It is imperative to fully examine every detail before selling or merging an accounting practice. How is your workflow? What are your business strategies? What are the firm’s strengths and weaknesses? Are you satisfied with your current staff?
These details should be thoroughly examined in order to determine a merger or sale outline and time frame.
Step 2: Determine value
Do you know what your accounting firm is worth? In this acquisition phase, you should establish the goal for a selling price. However, do not minimize your firm’s value. In order to establish a fair selling price, you should base it on your firm’s strong points, line of business, retention rates, assets and more.
This is the time to showcase your CPA firm’s value and how it would bring worthwhile success to the merger.
Step 3: Choose the right help
If you’re ready to proceed, your acquisitions team will guide you through the right process and coordinate business transactions between the buyer and seller. You need someone with experience in selling or merging an accounting practice. And that includes understanding the industry, knowing how your accounting will be impacted, and the potential tax implications.
If you’re in doubt, consult an industry expert. Fusion CPA provides a sturdy, financial foundation for CPAs and clients. We’ve successfully transitioned countless accounting firms of every size, and can help you too.
To see how we can help you navigate selling or merging an accounting practice, schedule a Discovery Call with one of our expert CPAs.
The information presented in this blog article is provided for informational purposes only. The information does not constitute legal, accounting, tax advice, or other professional services. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained herein. Use the information at your own risk. We disclaim all liability for any actions taken or not taken based on the contents of this blog. The use or interpretation of this information is solely at your discretion. For full guidance, consult with qualified professionals in the relevant fields.
