If you are finding yourself experiencing burnout or lack of fulfillment from operating your CPA firm, you could benefit from identifying the ideal exit strategy.
Not everyone, however, feels selling is the right thing to do at present. Having questions about how, or, for that matter, whether to sell is understandable. Removing yourself from a firm you spent many years building is never an easy decision. That said, an honest assessment of the firm and your role may be overdue. Holding onto any business long after it makes sense to sell might not be the best plan of action.
What are some points you should think about when pondering a sale?
Running the Firm Becomes Overwhelming
The owners of a firm have to put tremendous hours into weekly operations to remain solvent. Even with the best support staff in place, an owner may find the "grind" overwhelming. A workweek of 80 hours or more may be the norm even outside the busy tax season.
As the years' pass, spending so many hours at the office becomes less desirable. If you want to cut back both your schedule and responsibilities drastically, then selling the firm might be the right strategy.
Dealing with Operational Issues
Even when you have the energy and enthusiasm for the job, there may be other concerns that move you toward selling. Employee turnover, in particular, sours managers on running a firm. The costs and inconveniences associated with re-hiring personnel add to the stress. When curtailing turnover seems impossible, it may be time to sell.
Reduced profits also sway decisions. The business itself might not be generating the revenues it once did. If you aren't receiving the desired compensation, why continue with running the business?
Sales and Mergers and Partnership Arrangements
Ultimately, an owner has to weigh the positives and negatives about selling the firm. Also worth considering is how to work with a third-party to sell the firm. Fusion CPA can help those interested in making a dramatic change. We offer an option for those planning on selling an accounting firm in Columbus, Georgia: we can set up a merger deal. Before working out the deal's particulars, our team follows a logical process to manage the transition:
Figuring Out the Sale Price
Putting an arbitrary figure on the accounting firm doesn't work. A reasonable and legitimate price maximizes the seller's ability to get what the firm is worth. The process of arriving at the figure is known as "valuation." Fusion CPA's team assists with the valuation process.
Several factors tie into the valuation. The firm might have some debts that detract from value, but the client base could be significant and drive the overall value upwards. These and other elements are examined to arrive at a price.
Timing the Sale
Entering and exiting the market relies on timing for maximum benefit. At times when demand for CPA services is high, then a possible "buyer's market" exists. In a market with weak competition, a successful and established firm might be able to take advantage of the current landscape.
Fusion CPA works to assist clients on many different matters. Assisting with merging a CPA firm is well within Fusion's business sphere. The merger process could lead to it becoming part of the Fusion CPA enterprise.
Planning the Sale
Selling something as complex as an accounting firm in Columbus, GA, does require careful planning. Last-minute decisions to sell the firm probably are workable, and would doubtfully lead to a desirable outcome. It might take several months to complete the sale process, so it becomes essential to plan. Our team is here to help you devise an exit strategy as early as possible. Firms planning for an eventual sale might be the best position to make a move.
If you are looking to sell your practice in the Columbus, Georgia area, we want to speak with you. We also consider mergers in this area with established companies, and we can consult with firms that need CFO business advisory services. Whether it is a complete sale, merger, or CFO business advisory partnership, we can help facilitate a working relationship that could benefit you.
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