Retiring Accountant - Blog Archives

No Longer the Accountancy Boss! 

 When selling an Accountancy Business how long should you, the retiring proprietor expect to be asked to stay on after the deal has completed?

It is very common that your acquirer will want you to work with them to ensure a successful transition.

This could work as:

A consulting arrangement for a set period of time to complete a full handover and secure the goodwill in the client base.

Or

Staying on indefinitely as a Managing Director with an attractive salary.

Now you are probably thinking “Hold on, why do I need to do anything further, they bought the business, they are now in charge and that’s the way I wanted it”!

But let me tell you why riding straight off into the sunset without looking back, could end up having a negative impact on the sale of your Accountancy Business.

Until a full and healthy handover is completed, you are still the leader of the pack and the person the clients, staff… and more often than not the acquirers look to, to maintain healthy relationships and to ensure that a successful acquisition of your business is achieved.

And surely you as the exiting owner will be happy to add value to your business sale by ensuring that a complete handover has taken place.

Only after this has been achieved, can you truly walk away, contented and able to enjoy the fruits of your labour!

By clicking here to download our eBook you can learn why it is so important to lay the foundation of an open, trusting and reliable relationship with your acquirer.

Because if you don’t, when it comes time to negotiate the terms of your handover you could find yourself holding the short straw!

So you must make sure that the job description and handover targets are agreed beforehand and written down in a legally binding agreement between you and your acquirer.

This can cover:

How long the handover period will be.

The amount of hours you will fulfil in the office.

Appointments per week you will be prepared to carry out (specifying a total over the handover period).

Agreeing a plan for joint meetings

Contacting clients to inform them of the sale and introducing them to the buyer.

The reasons why putting an agreement in place are so important is because:

Firstly, if something goes wrong in client meetings, you can use your well established relationship with your clients to smooth over any potential discord.

Secondly, being involved in the business as a part time consultant will show your clients that you haven’t just abandoned them for pastures new! The feeling of continuity for clients will reap benefits up until you feel your clients are fully and happily under the wing of the acquirer.

And you will want clients to stay where they are, not only for your professional pride but to avoid the obvious potential liability of orphaned clients floating around!

And like I said before, by the time you have gotten to the handover stage, you will have already built up a reliable and trustworthy connection with your Accountancy acquirer, which will make the specifics of the handover run so efficiently.

But if you make the mistake of thinking that your continued presence isn’t worth anything then that could have a very negative and knock on effect!

Over half of Accountancy sellers we have spoken to didn’t realise that they could negotiate the terms of their handover, as they assumed that they had less control than the acquirer.

Which meant that points that were important to them were not covered, which in turn made their exiting experience less than pleasing!

So don’t let that be you!

If you are looking to attract top Accountancy Buyers, here are 3 ways I can help:

Claim your FREE copy of our guide that reveals the top tips when entering into negotiations with your Accountancy acquirer by clicking here.

Book in with one of our expert consultants who can talk you through the selling process, step by step and can update you with acquirers hot on the market right now by clicking here.

And if you want to find top Accountancy buyers in your area, reply to this email with the word ‘FIND’ and I will see if I can help.

Best Wishes

Stephen Hagues

PS. Click here to download our eBook on The 9 Key Steps to Negotiations so you don’t end up talking your way out of that premium cash offer for your Accountancy Business!

Knowledge is Power!

For most accountancy business owners that I have worked with, growth is key to increasing profits.

Another important thing I have learned is that organic growth is hard earned!

Therefore the quickest and in some cases the most sensible thing to do to achieve growth and increase profits...

...is acquisition! 

Acquiring a business however, is not always straight forward. In fact, for first time accountancy buyers it could be the single most costly business decision that they ever make.

So acquiring the wrong business is simply not an option!

In fact, mistakes of any kind are likely to lead to significant losses and must be avoided...

...To help make sure that they are, I've compiled a list of the 5 key things to remember when buying an accountancy practice!

1) Decide what it is that you're looking for.

Purchasing a business is often times the biggest expenditure that any firm can undertake...

...so it's important to make sure you get it right!

Size, location, cultural fit. These things are all of paramount importance when considering exactly which businesses you are going to be looking at in terms of acquisition prospects. 

2) Do your research!

It has oft been said, that if you fail to plan, then you plan to fail...

...now this may seem somewhat simplistic, but in this instance it is absolutely true. You need to ensure that you have all of your own finances in order and are in a position to acquire before you even start thinking about it. 

3) Ensure that you undertake full due diligence.

Following on from point number 2, once you have got yourself ready and have worked out your target. It is crucial that you establish that you establish that the business is as advertised.

I can't count the number of times I have spoken to clients who have gotten to 6 months post-acquisition, only to find that there was an obvious reason that the business was for sale in the first place...

...I can tell you, this reason is rarely good.

4) Consider working with a broker.

If you've done your research and haven't found exactly what you're looking for, then the next logical step is going through professionals.

Brokers work with hundreds if not thousands of businesses a year and so have a much wider net to cast...

...therefore they are far more likely to be able to find a suitable acquisition target and also likely help take a huge amount of weight off your shoulders when it comes to the nitty gritty.

Engage the right brokers and the route through acquisition will always be much smoother.

5) Draft the right sales agreement.

You've done all the hard work, found a target, now it's crucial that you ensure the draft agreement is in place and written up correctly.

Make sure you used an experienced and reputable acquisitions attorney here, it is not an area to be trying to save costs!

Your brokers will be able to point you in the right direction here. Make sure you are thorough and leave no ambiguities.

If you follow these 5 steps then you will be well on your way to ensuring a successful acquisition and capitalising fully on the solid foundations of organic growth that you had previously been built on.

For more information on the acquisition process and the 18 essential points for due diligence to ensure you don't get ripped off, download our free e-Book by clickinghere.

I have worked with thousands of acquirers in over a decade in the industry, and these key points are guaranteed to make sure that acquisition runs smoothly.

Hear about how to spot the real goodwill value of a firm and spot a brilliant investment here. 

Best Wishes,

Steve Hagues

PS. Uncover the 5 most common major mistakes made when acquiring an advisory business and how to avoid them here!

Most business owners who are looking to retire don’t expect their Accountancy exit to be easy, but many are surprised by how difficult it can be to sell their business

It can be extremely hard to negotiate a good price in a reasonable timeframe, especially in the current economic environment

The majority of frustrations and challenges that Accountancy Business owners experience can be so easily avoided with a little upfront information about the pitfalls of selling an Accountancy Business

And trust me

You will want to arm yourself with as much knowledge as possible to avoid making mistakes that would inevitably have a significant negative impact on your Accountancy business sale

Well the key tips which can help you leverage a premium offer for your Accountancy Business

And give you peace of mind knowing you have checked off all the right boxes in the process are outlined here in our video How to Avoid the 2 Costly Mistakes When Selling Your Accountancy Business

There are dozens of challenges to overcome, such as

Insufficient Preparation

Lack of preparation is by far the most common mistake that Accountancy Business owners make

Just like you would spruce up your house before hanging a ‘For Sale’ sign in front of it, the same applies to your Accountancy Business

Because in the early stages of an acquisition an acquirer will make a judgement on how much they think your Accountancy business is worth and you want to be able to give them all the information they require so that they can make an informed decision

And ultimately offer you a premium price

You can learn all about how to get your Accountancy Business prepped to tip top shape and ready to receive those premium offers by clicking here to download our video

I cannot stress just how important it is to click here now to watch our video, because a lack of preparation doesn’t just apply to you either

Not carrying out reverse due diligence on potential acquirers is another mistake that Accountancy Business owners make

In fact, did you know that over 70% of the Accountancy Sellers we surveyed admitted that if they had carried out that due diligence on the acquirer they would have found crucial evidence that actually they were nowhere near the quality of acquirer that they had made themselves out to be

You could easily end up making these same mistakes and I guarantee it will end up costing you greatly if you do!

Best Wishes,

Stephen Hagues

PS. Are you curious to know if your Accountancy Business is in the best shape? Our expert consultants are ready to speak to you if you are, click here to talk to us now

Power To The Accountancy People!

No doubt you are a hard working Accountancy Owner, and you have your Accountancy Business which stands tall and proud on its own and it has made you successful. 

But now you ache for a more substantial challenge. 

Growth through acquisition can help fulfil this desire for a challenge but expansion, simply means:

You acquire

You grow

You increase your profits! 

The prospect of acquisition may be provocative and most likely will be the most sensible way to achieve an increase in profit however, it could also be one of the most costly business decisions you ever make…

… So you need to make sure that you acquire the right business

Because if you don’t you could end up with a significant loss!

One of the main mistakes when acquiring is underestimating people power.

I cannot stress how important it is to maintain open and trustworthy relationships with the people you come across during the acquisition process, and you can read more about this subject by clicking herenow to download our eBook you can discover the secret to seeing your clients through the acquisition transition smoothly and start the foundation of a trustworthy and reliable future together.

Because if you don’t, they will take themselves and their cash and go elsewhere… 

… And your expected increase in profit will crash and burn! 

And the clients aren’t the only important group of people that you will have to look after. 

Retaining the employees could end up being a great win for you, because they are the people who know the business you have just acquired inside and out. 

And they will have something you don’t have

Which is confidential, loyal and reliable relationships with the clients. 

So you have to ask yourself, if you cannot or choose not to retain your staff, could this adversely affect your client retention and vice versa! 

It would be naïve to think that one group of people couldn’t affect another when they are so connected through the business.

If you disagree, you won’t want to click hereto read just how underestimating the people in your newly acquired Accountancy Business can be extremely harmful to any profit that you hope to achieve. 

Because at the end of the day these people are the ones who will help you increase that profit and make your Accountancy Business even more successful than it was before! 

Best Wishes, 

Stephen Hagues

PS. Want to acquire? Expand your horizons and increase your profits? 

With absolutely no cost to you or obligation, click here to speak to one of our expert consultants who can walk you through the process. 

We will also talk you through what a successful acquisition could mean for you professionally and personally.

But hurry because our consultants are in high demand so click here now before it is too late!