09/30/2011 17:16:43 PM
Two-stage deal structures can work in certain circumstances. Basically, a two-stage deal structure is when you have an initial period (stage one) where the firm’s cohabitate together, typically into the buyer’s existing office, and then close the transaction and the have the seller retire at some future date (stage two). There seem to be some initial advantages. It allows for a longer transition period. It also allows for the buyer to not start paying the seller for the ownership [..]
08/18/2011 13:20:02 PM
Last week, Ali the Accountant sent in a question, “When buying or selling a practice, can you please advise how you split up the work in progress (WIP)? I would presume it is done based on time spent and not billed before the sales and how much time is spent on the file after the sale can you please confirm?”
It is going to depend greatly on the timing of the sale, the amount of WIP, the nature of the WIP and the two parties in the transaction.
For timing example, if t [..]
08/10/2011 14:57:28 PM
Last week, David the CPA sent me a great question that I thought would be relevant to the market at large. He asked, “Is it possible to buy part of a practice or must we be willing to purchase all of it?”
First, let’s separate the market between the single owner practices and the multiple partner practices. In the later, buy-ins occur particularly when the practice has a gross over $2 million and several partners of varying ages. It is not uncommon in a firm of t [..]
08/03/2011 13:36:57 PM
It’s time I developed the next portion of a blog I posted back on January 21st. The blog, Three Keys to Successful Accounting Practice Development, outlined that three key elements of any successful practice development plan are: client experience; lead generation; and lead conversion. In February and March, I posted blogs on client experience and now would like to revisit this series with thoughts on lead generation.
Lead Generation. How will you find new prospective clients? Develop [..]
06/09/2011 10:37:19 AM
No one lives forever. A day will come when it is time for you to retire, or to begin a new chapter in your life. When that time comes, if you have not planned for a successful transition of your practice and your clients, you will find that many options have been lost to you. Whether you are considering a merger or sale or planning for an internal succession, Succession Planning begins with your decision to take responsibility for your future.
For single owner firms without the professional s [..]
05/11/2011 11:06:56 AM
I’ve been looking at the April 2011 Journal of Accountancy and the article “Survey Highlighs: Emerging Tools for Firms of All Sizes” interested the “broker in me”. Surveying a bit over 2,900 firms, the top three technology uses were: 1) Time and Billing Software, 76%, 2) Use multiple computer screens, 71%, and 3) Have an active/maintained website, 66%.
Here’s where the Perception part comes in. If you’re selling your firm (or just promoting it to potenti [..]
04/26/2011 11:30:13 AM
It’s not always easy to tell if what a person says is accurate. To a point, we have to accept what we’re told…take that “leap of faith”. Once upon on a time, when I had a CPA practice, I knew that the clients really couldn’t judge whether or not I was a “good” CPA. All they knew was that I had the certificate and, if they went with me as a client, they would soon enough find out if what I told them was true, both about me and about my practice. [..]
03/31/2011 10:03:10 AM
Beware of the headline above! It is likely you will receive a letter or email to this affect in the coming weeks. Don’t fall for it.
Why? Because it probably isn’t true.
The truth is that all brokers and consultants that specialize in accounting practice sales have a database of potential buyers they have spoken with or that have registered with their firm. We are in constant contact with these “buyers” and typically only receive serious inquiries from them when a pra [..]
03/10/2011 11:15:13 AM
Continuing with our third and final part of The Accounting Client Experience, let’s put ourselves in your clients’ shoes. How are clients treated when they visit your office?
The Front DeskFirst, what is the demeanor of the person manning your front desk? Is the person naturally engaging and welcoming or is he/she naturally confrontational and off putting? Putting the right person in this role should be the first part of your policy.
Once you have the right person, what should the [..]
03/03/2011 14:55:28 PM
Even though its tax season, it is still very important that you consider ways that you can increase the value of your firm.
Fee Increases are Important
The number one way you can increase the value of your business is to increase your income. A little increase can go a long way. A 3 to 4% increase seems like a very small amount and it is hardly noticeable to your clients, but it compounds to you every year and over time.
If you consider a 3 to 4% increase over a 10-year period, it takes what w [..]