I was talking to Don Wood the other day (the founder of Accounting Practices) – he is now retired and living on the Gold Coast – and the problems and opportunities that we are currently facing, are the same problems he faced when he was in practice and also found talking to practitioners when he founded Accounting Practices.
We have been successful in helping many practitioners exit their practice for the best price and on the best terms. This is not including the many highly qualified Accountants we have placed in Practices to succeed the owner over a period of negotiated time.
Our wide knowledge of the profession gained since 2005, has always been based first and foremost on helping both the vendor and purchaser achieve a suitable outcome. Sometimes, of course this means no deal takes place, but both parties have gained knowledge which will help them in the future! In most cases both parties have to be prepared to modify their expectations to enable the deal to go ahead. How many times have we seen this when our clients wish to exit!!
We have access to many young, eager professionals who have the necessary drive and experience to become practice owners.
Recently we came across a very interesting and experienced Accountant in his late 30’s/early 40’s.
He was very keen to exit his current firm, because he was unsure of his future prospects! However, it was because he felt he was hitting a ceiling and unsure of his career path forward or future prospects. (Have you been communicating honestly, sincerely and frequently to your senior accountants?)
The person approached our firm about possible options. It was not long before we had found an interesting opportunity with an older accountant that had planned to exit over a period of time.
The time frame for the transition was 18mths; the young accountant suddenly decided that he was not very keen to buy just yet.
Why? Suddenly he sensed just what responsibility he would be taking on! All our Practice owners know the huge risks, rewards and responsibilities that an incoming practitioner takes from day one of operating a practice! Cash flow (will there be enough money to pay wages and salaries this week? Will I be able to pay the massive GST and PAYE bills on time? ) - staff responsibilities (am I able to operate an HR department and keep the staff who I want to keep and get rid of the stirrers and slackers?) – Clients (getting the clients the information on time and at an affordable fee?) – retaining new clients (giving them the sort of experience that I promised them!)
A reality check and something to think about, ensure if you are ready to go into Partnership/acquire fees you have ticked off certain key points below:
- Are you mentally prepared for ownership
- Can you network or have the ability to build relationships
- Do you have the capital to purchase a practice
- Are you able to add value or identify opportunities
- Do you have an experienced person to assist you in the due diligence process
- Is the vendor selling likely to stay on board for the transition
Those are just some key points to think about, if you are looking at ownership or becoming a director in a CA firm.
If you’re an Accountant that is looking to further your career in Public Practice or looking to acquire a fee base or practice or just needing market advice, then please contact the experts- Accounting Practices today.
This post was also featured as a NZ Business article on their website here:
We have been buying/selling/merging & placing high level Accountants into succession planning roles since 2005.
We are the only agency that works exclusive in the Public Practice space.
Contact the team today at Accounting Practices.
firstname.lastname@example.org or 022 0432 880 or main office 09 600 2092