The Many Dimensions of Accounting Practice Sales
Finding an accounting practice to purchase is easy. Finding a profitable firm that will continue to be successful is not.
Purchasing an accounting practice may be a very profitable venture. With any new enterprise, there are things to watch out for and things to make certain to do. Services are available to assist in the match-making and decision-making. Or the search for a firm can be performed alone, the decision is yours. Just make sure to do your homework so that at the end of the quest, both parties walk away happy.
The buyer may have just received a license and looking to jump right in with their own practice. An accountant might be moving into an area and does not think the population could sustain another practice. But, taking over the duties of an existing profitable firm would suit the community. If the seller is moving, taking the practice with them may not be profitable or feasible. The seller may be looking to retire, or may be changing careers. Really, about the only sad reason to be selling an accounting practice is if the owner past away.
There are multiple different types of practice sales. There are sales of Certified Public Accountant (CPA) firms, Certified General Accountant (CGA) firms, Executive Advisory (EA) firms, Chartered Accountant (CA) firms, tax and bookkeeping practices, etc. Virtually any type of practice you are looking for, it's out there for sale.
Accounting practice sales are much like real estate and sometime involve real estate. Any firm of considerable size must operate in a corporate building, even if only employing a few staff members. If the building is owned by the seller, this location may be for sale along with the practice. Many times the space is rented so the buyer does not have an option to buy. This situation does give the option of continuing the lease agreement or packing up to a different building.
Real estate agents and accounting practice sales brokers are paid a percentage of the transaction, to either find a buyer for the seller or vice versa. These brokers generally work on commission and are able to fit the right seller with the right buyer. This professional has more of an opportunity to search what types of firms are for sale at the moment and find deals for buyers and find excited leads for sellers. As with everything else, if you feel qualified to evaluate potential and are willing to take the time and energy to find the best firm for your desires, go right ahead. Before taking the bull by the horns, consider some of the other factors going into purchasing a successful accounting practice.
Accounting practice sales have many more factors that play a role than in real estate. In accounting practice sales, the condition and momentum of the business plays the biggest role in attraction. Other major players are market conditions, the growth or dwindling of the surrounding community, and how strong or weak the economy is. The last reason is probably the smallest factor because there are two ways of looking at a recession. The first group of people tighten their belt and spend the least amount they can, even when it brings them profit in the long run. The other group will seek qualified financial guidance in the time of scarcity to make sure the right moves are being made. So whether the economy is receding or flourishing, there is always a need for accounting services.
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ABOUT THE AUTHOR
Joe Coffee is an entrepreneur for the online marketing firm, Web Shepherd. He writes about small business accounting options and tips about leading methods of accounting.