How to Find the Right Accounting Practice to Buy?

There are logical steps you should take in order to find the right accounting practice to buy. Topping the list is determining needs and identifying strengths and weaknesses. Competition in the accounting practice industry is fierce, so you need to find a firm that offers innovative strategies in order to gain a competitive edge. Are you looking to build own current practice one client at a time, or is it Their to merge with an existing accounting practice and add their client base to books. Buying an existing practice with a proven track record can often generate enough income to offset the purchase of an acquisition and help you achieve goals sooner. 

There are a number of inherent concerns when purchasing an existing practice, such as whether or not the existing clients will remain, and if the practice is priced fairly. You will want to know about financing options and what you will need for a closing.

Determine the right location and size of accounting practice. It should also be positioned in a convenient location in order to serve clients well and expeditiously. Research the types of existing technology and software at the accounting practice you are considering buying. Will it need modernization or upgrades and what could that cost? You will need state-of-the-art services in order to focus on constantly updating client database with new insights. Technology can improve the efficiency and speed of their operations; vastly improve communications; increase client recruitment and retention; increase and simplify promotion and marketing efforts; and increase visibility and perceived company value. 

Follow instincts about identifying competitive threats or internal staffing issues. Identify if staff and teams are thoroughly trained on sales and/or customer relations programs in order to increase sales and provide for many more opportunities. Can they excel at what they do and help you to excel as a company?

Examine client rosters and ask themselves if you can relate to the clients. Would you enjoy working with them, and how well do you relate to the seller of the accounting practice you are considering buying? Develop a rapport with the seller in order to determine if you trust the seller. Remember, first impressions matter. Identifying the seller’s professional qualifications and skills will make it easier for you to understand the seller’s background. Plan to build on existing clients and their needs by understanding their challenges, goals and objectives. Become their source of help. Cross-sell and upsell services. 

Observe the management style within the accounting practice. Does it provide a structured or flexible management style? Is the staff relatively happy and content, or disorganized and harried? Determine if it is an organization that fosters collaboration and shared mutual goals that could help the company to continue to grow. Seek effective communicators that willingly share each other’s knowledge. Look for effective teamwork. Identify all revenue streams, and specifically, examine the client structure to determine if it is right for you.