The Buyer’s Perspective: What to Look for in a CPA Firm
When considering the purchase of a CPA firm in Arizona, buyers should focus on several key aspects to ensure that their investment is sound and that the firm can continue to thrive under new ownership. Here’s a comprehensive guide to what potential buyers should look for: 1. Financial Health The financial records of the CPA […]
5 Steps to Maximize Your Accounting Practice Valuation Multiple
“Main Street” Accounting Practice Mergers & Acquisitions If you are counting on selling your book of clients to another owner-operator in exit you may be shocked at the buyers that take interest. There are fewer owner-operator buyers in the buyer pool for Mainstreet-sized firms (defined here as less than five million in revenue) than ever […]
Sell Side Due Diligence for Accounting Practices
We have all heard of due diligence, and it is accepted as a necessary step for buyers when they are investigating an acquisition or merger. Sell side due diligence for accounting practice principals is rarely addressed. Should sellers be conducting due diligence on the buyer? Yes, is the short answer. This article will discuss some […]
LOI (Letter of Intent) to Closing – 3 Big Issues
Exclusivity, Definition of Revenue, and Buyer Guarantees There are numerous components within an LOI (Letter of Intent) in an accounting practice acquisition. This article will discuss three areas that can cause headaches, if not deal breakers when it comes time to negotiate the final definitive agreement and close. Exclusivity, definition of revenue, and buyer guarantees […]
Work/Life Balance – A Personal Story – Don’t Make the Mistake I Did!
I was the sole provider of income for our family for many years. My wife worked in the early years of our marriage, but once we started having kids, she stayed home, and I went after career, income, and what I thought was security. I told myself that working harder and longer and saying yes to […]
Fishing for the “Right” Buyer – Accounting Practice Exit!
Changing Demographics is Increasing the Supply of Accounting Practices for Sale. In 2024, more baby boomers will turn 65 years old than any other year. There is currently a massive transfer of wealth underway as boomers continue to exit their small businesses. We have seen the supply of accounting practices and CPA firms available for […]
Accounting Practice and CPA Firm Valuation Multiples Update for 2024
It will be a busy year this year for Mergers and Acquisitions in the accounting practice and CPA firm space. The baby boomers are exiting at a record pace, private equity, aggregators, and wealth management buyers are dominating the buyer pool and 2024 is the year that the greatest number of boomers turn sixty-five. While […]
How to Scale Your Accounting Practice to Sell: Key Strategies for Growth and Exit Preparation
Scaling your accounting practice for sale involves strategic planning and a methodical approach. To optimize the value of your firm, start by streamlining operations and ensuring that your financial records are impeccable. Your accounting practice is more attractive to potential buyers when it operates efficiently and boasts consistent revenue growth. Strong, transferable client relationships and […]
Preparing to Sell Your Accounting Practice: Key Considerations
Preparing to sell your accounting practice can be a daunting task, but with the right preparation and guidance, it can be a smooth and successful process. Whether you are looking to retire, move on to a new venture, or simply want to cash in on your hard work, selling your accounting practice requires careful consideration […]
Potential Contract Issues To Look Out For When Buying An Accounting Or CPA Practice
Buying an accounting or CPA practice is an exciting venture for many entrepreneurs and seasoned accountants looking to expand or diversify their portfolios. While the allure of an established clientele, proven systems, and reputable brand may be attractive, it’s essential to approach such an acquisition with caution. One of the most significant aspects to consider […]
