How to Sell an Accounting Firm for High Value

It is important to know how to sell an accounting firm for high value because competition in the accounting industry is fierce. There are solutions to the challenge and they involve being innovative enough to gain a competitive edge. Some strategies include:

Structuring the accounting firm for purchase involves evaluating core markets in order to document key factors that affect the perceived value of a business, whether it is growing or declining, or if competitors are expanding. It is important to understand what factors prospective buyers are utilizing in their business acquisitions. Structuring also includes setting the price and terms, and issuing a comprehensive Business Sales Memorandum. 

Strengthening an existing client base encourages loyalty to an accounting practice, and it can be a very attractive selling point for an accounting practice. Take the time to research and learn more about clients and their needs because new business is often generated by references from existing clients. Sell the point to prospective buyers that they have built strong relationships with clients and understand their challenges, goals and objectives to better serve them. Offer tips on cross-selling to clients. 

Provide a potential buyer with an existing trained staff that shares mutual goals and helpful information. Communicate and share each other’s knowledge by breaking down any miscommunication or barriers. Proving they have invested in collaboration and effective teamwork may persuade someone to buy an accounting practice for high value as compared to a different firm. 

As potential buyers tour CPA firm, present technologies as modern and state-of-the-art. Current technology is no longer a want, but a need, in today’s modern business world. Modernize available client data, as well as provide state-of-the-art services to clients. Focus on constantly updating client database with new insights. Technology can improve the efficiency and speed of operations; vastly improve communications; increase client recruitment and retention; increase and simplify promotion and marketing efforts; and, increase visibility and perceived company value, just to name a few remarkable potential effects of a digital presence. Ensure all staff and teams are thoroughly trained on sales and/or customer relations programs in order to increase sales and provide for many more opportunities. Make them excel at what they do and teams will prove to a potential buyer that they can excel as a company. 

Staying abreast of developing advances in the accounting field can also be achieved through technology, as well as by attending events and conferences. Share an advice with potential buyers about how industry events are essential for gaining numerous new client referrals and prospects, and for important general networking.

Develop innovative ways to continue to build a network, the bigger the better. Stay aware of untapped potential connections and prospective companies. Share information with a potential buyer about all the local publications used to research local businesses, especially ones that appear to be growing fast. Show how anyone can lead an industry by showing off successful clients and trained sales staff.