When selling an accounting practice, one of the most important things to get right is the process. It is paramount that you are dealing with the experts that understand the art of the buy/sell/merge of Accounting Practices.

Since 2005, our staff at Accounting Practices have learnt a thing or two about selling an Accounting Practice.

The common questions asked are:

• Claw Back?
• Should there be recourse? - If so, how much and for how long can payments be staggered?
• There have been instances where purchasers want a commitment by the vendor on a turnover warranty that is futuristic or work has not even been done or billed out yet!

What Purchasers need to understand, is that they are not buying a fee base or a job!

Pertinent points below:

• It is not just the fee base, but you are buying the overall value of the business ie marketing, creditors control, recruitment etc.  
• Buyers try and disrupt the flow from the outset, therefore clients leave! Always or in most cases, the transition should be smooth on a going concern.
• The 80:20 – Understand the portfolio of clients and get onto the top 20% very early on takeover!
• Client service is paramount!!
• It’s not all about just selling and exiting, but the transition of key people!

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!!