Selling any business or practice is going to be tough, and if you are looking into selling your accounting practice, this is going to be more complex.
Indeed, the majority of accounting firm owners are now reaching the age of retirement, meaning there is likely to be an increase in the number of accounting practices being put up for sale. If you are looking to sell your accounting practice, it’s highly likely that there will be some competition to get the asking price that you want.
So, how do you ensure that you sell your accounting practice quickly and with as little hassle as possible? Read on for some top tips.
Smaller Is Easier
If you have a smaller accounting practice, it will likely be easier for you to find somebody who wants to purchase it. But the first thing to consider is how much is an accounting practice worth or how much is a tax practice worth.
It goes without saying that smaller tax or accounting practices are cheaper to acquire, which means you will have a wider range of potential people looking to buy it. It’s also worth considering that a smaller practice will usually have fewer staff members to accommodate through transitions, which is also appealing to those looking to buy.
Can You Pass It On?
Suppose you are at the end of running a family firm. Selling it on means the end of this. So, if you would rather have your firm continue on, it may be a wise idea to consider somebody internally purchasing it instead. This is succession and is usually built into a business plan; it is also usually harder for any smaller accounting practice that may not have the budget to train somebody to be the head of the firm.
Gain New Clients
The success of any business venture is based on the clients, and not always the number. It is better to have five clients who pay on time and offer regular work than 500 clients who you never hear from!
So, if you are looking to sell your accounting practice, one key thing to look into is the strength of the clients on your books, and, if possible, it may be worth looking into gaining new clients to make your firm look more appealing to potential buyers.
Earnings Need To be High
Nobody wants to buy a failing business, and this can be tough to plan when looking into sales. In order to ensure that you tick all of the boxes for potential buyers, you will need your earnings for your firm to be high, at least on average, in order for it to be appealing to buyers.
This is another good thing about getting new clients who are of high quality, as they will boost your revenue.
Look At Technology
It’s also worth looking at the technology that your business uses. If you have cloud accounting or tax, then you need to promote this as part of the sale. Such technology will ensure that those who purchase your business will have access to it as well and is a sales bonus as it means they won’t have to spend additional money once purchasing the company.
You should also ensure that any staff that is going along with the sale are proficient in the technology too.