This seems to be a topic that is fairly common in our line of work - the Brokering of Accounting Practices.
How much and what needs to be disclosed?
A few words spring to mind and that is ‘emotion’, ‘protective’ and ‘premium’
Our role as Professional Brokers is to remove the self-doubt and emotion from the vendor and work through the process in a very transparent manner.
The common deal breakers are; keeping staff on board; current contracts; culture change and of course; the asking price etc.
That is why dealing with a Professional Broker (such as accounting practices) is absolutely paramount - to ensure there are no tyre kickers or last minute changes to deter the business from selling!
It is absolutely important that all relevant information is disclosed from the outset, so that the due diligence process (if it gets to that stage) is made smoother. If you want a premium price for all the hard work you have done, over the years then relevant information is paramount.
The due diligence stage is a lot smoother, when all information is disclosed from the outset and it is a matter of the purchaser just verifying numbers/paper work etc.
All contingent or one off work, may not be included as part of recurring revenue, unless there is guaranteed work from the same client.
We understand how sensitive the market is when it comes to a firm looking to sell, that’s why we are the only agency working exclusively in the Chartered Accounting market.
It’s not a matter of putting up an ad in the Journal or talking to another firm.
We have heard countless stories of firms losing clients, due to information leaked internally about a potential sale.
We remove all that by working in absolute confidence with the vendors, we also prequalify and scrutinise purchasers to ensure they are genuine in their pursuit to acquire.
We can write a novel on the various stages; however these issues/queries can be addressed when we meet to discuss various options for you and your firm.
If you’re looking to BUY/SELL/MERGE, then talk to the experts who understand the Chartered Accounting Market.
Riki Sila, MBA