Preparing Your Accountancy Practice for Acquisition – Part 1!
Over many years of experience we have dealt with countless Accountants seeking an acquisitions specialist and have had the opportunity to locate, facilitate and support a number of Accountancy business sales.
Whether or not you have a fully ‘prepared for sale’ business, can make or break not just the valuation and offer but if the buyer even decides to proceed!
Over the next 3 weeks, our blogs aim to share with you, your very own quick fire starter checklist that will highlight all the points you should consider when preparing your Accountancy practice for acquisition…
- 1. When should you start preparing?
Even the most prepared Accountancy firms should start to begin the process at least 2 years before you start opening doors to discussions with prospective buyers.
As you read further into the blogs, you will see why…
Why do you want to exit the industry?
Why do you want to sell your Accountancy practice?
Understanding your emotional motivators will keep you focused on your end goal. To help you achieve this, try and picture and understand what your world will look like post sale.
- 3. Articulate your journey so far…
When you meet potential acquirers you want to put forward a clear and concise picture for them of…
What your Accountancy practice is…
Your firms USP’s…
Your preferred outcome.
- 4. Improve. Cut. Improve!
A business that isn’t efficiently run will make any acquirer run a mile…
So you need to make sure yours is an efficiently run Accountancy practice with strong turnover which, will be far more attractive than a practice that wastes money.
Burn this formula into your mind and don’t forget its meaning or just how powerful it will be for you to achieve the optimum result…
Improve efficiency + cut out unnecessary costs = Increased turnover
Two words that have very important meaning for the price you can get for your Accountancy practice.
Many acquisition strategies and valuations emphasise greatly on your businesses level of recurring income…
The most lucrative strategies expect to see business where at least 50% of turnover includes annual recurring income.
If your business isn’t quite there yet then make sure you get it there…
Because the difference will be great!
Best wishes,
Steve Hagues
PS. Visit the Retiring Accountant website next week for Part 2 of our blog which explains why segmenting your client base is important to attracting high quality buyers and a premium price for your Accountancy practice.
