You have but blood sweat and tears into growing your business and now the time has come to prosper from efforts. Choosing a broker to help you sell your CPA, tax or accounting practice can be a daunting task but here are a few tips to help you decide:
Go With a Pro:
There are many business brokers and many types of different business brokers. We would recommend going strictly with a specialized business broker when selling your accounting practice. This may seem obvious but we have heard some real horror stories about normal business brokers trying to sell your professional practice. In fact, we often get phone calls from other brokers asking questions regarding purchase price, retention periods, etc.
Don't Sell For Less:
When selling your practice you want top dollar for it. Top dollar depends a lot on the practice and on the broker. There are a few different ways you can sell your practice and they all will likely generate a different purchase price. You can sell at a fixed price or on a retention basis. These are the most common ways. A fixed price will likely yield you less money then selling on a retention basis. This is because when selling for a fixed fee, the buyer bears all the risk. This is a VERY risky proposition for most buyers and can also detour many of them from moving any further with the transaction. Selling based on client retention will give the buyer security. The buyers are willing to pay a premium for this security.
Professional Presence:
Analyze how long the broker has been in business. How many accounting practices have they sold over that time? Look at their website, does it look professional? Do they have actual practices listed? Some brokers will continue to keep listings up for months if not years with a "Sold" sign next to the listing. We would recommend going with a broker with fresh and actual current listings. It is no secret that many accounting brokers operate the same way but the proof is in the pudding. If the broker has closed hundreds of deals and have been in business for 10+ years you should feel more comfortable in dealing with them.
Trust Your Gut:
Many of our previous clients have commended us on our overall professionalism and attitude. This is a professional transaction with a personal touch. When working with your broker, you will gain a professional and personal relationship. You need to make sure that these personalities are in line with what you expect. You should interview with several firms before deciding on the one that is going to ultimately try and sell your practice.
Brian Naab
Business Development Officer
Naab Consulting
http://www.naabconsulting.com
888-726-6282
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