Retiring Accountant - Blog

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! 

If I was to say to you, that you are a chicken…How would you feel?

Angry?

Mightily offended?

Good! They are wise reactions to have… I want your feathers ruffled!

Because let me tell you my friend, there are foxes on the prowl…

…and they are headed straight for your henhouse!

…your home

…Your empire

…Your life!

As the chicken, you have foxes that are just waiting to break through your defences…

These foxes are the sly predators that prey on potential selling individuals such as yourself, and will manifest themselves as:

Inexperienced buyers and…

…Less than attractive cash offers!

These are just two examples of the proverbial foxes that are just waiting to make you a meal, and there are many more…

…Click here to down load our video and discover why Sam Slicer is the ultimate fox to stay away from and learn not to end up in the belly of the beast!

Because if you don’t, that cunning type of buyer will steal and devour everything that you hold dear!

But, don’t let the threat of the fox divert you from your lucrative Accountancy Business sale. Click here now to discover how to make your business fully prepared to attract those cash rich buyers and secure a mouth-watering offer that is as delicious as you are!

Best Wishes

Steve Hagues

PS. Ladies and Gentlemen, I give you todays fox! Click here to download our video on how best to avoid the 4 pitfalls when choosing a buyer for your Accountancy Business! 

Don’t Forget Your Accountancy Due Diligence…

Picture this… You have decided you want to spend some of your hard earned cash on a spanking new car!

So you go down to the dealership and tell them you want to treat yourself and you aren’t afraid to splash out a little extra for that sparkling new paint job or the gleaming new wheels…

You tell the salesman to add all the fun little optional extras that cost a little bit more but hey…

Why not… You work hard and you deserve this!

You’ve picked out your slick new motor, you’ve taken it for a spin and now you are completely and utterly sold…

And without further delay, you’ve signed on the dotted line and handed over a pretty penny!

As you drive off the forecourt, you are ecstatic… You even feel like a new person, such is the confidence that driving this powerful and beautiful machine gives you!

But…. When you were looking around your new ride, did you think to check under the hood?

Let’s cut to 6 months later…

The engine warning light keeps flashing on, you have a constant oil leak… There is a rattling noise that is driving you to distraction and you are suspicious that you could have faulty brakes!

And after taking the car to your trusted mechanic, you find that not only does it have a multitude of problems, it is unsafe to drive and needs an obscene amount of money spending on it just to get it back on the road!

Your expensive investment that you thought would last you, has turned into a financial and logistical nightmare…

And, the point I am driving home here is… If you had done a thorough check of the shiny new motor before signing your cash away, you would have realised that it was in fact a wreck!

Now apply that scenario to your acquisition of an Accountancy business without doing any due diligence…

…Because after you have committed your signature and a big cash sum to your acquisition you cannot go back afterwards if you find the business wasn’t what you thought it was!

Firm and resolute due diligence by you the acquirer, is key to finding out what might be lurking underneath the surface of a sellers fancy crisp letterhead and impressive offices. And if you click here to read our eBook, you will find a checklist of information that you should expect to see in the initial stages of the acquisition…

And it is in the early stages of acquisition that you mustn’t be afraid to ask questions, which the seller must answer…

… If they have gaps in their service history… then why? The reason could be a deal breaker and you need to put the right amount of pressure in their proverbial tyres to get the answers you need…

… To make an informed decision as to whether this will be a lucrative and successful investment. Let our eBook on Five Ways Not to Buy an Advisory Firm be your manual on the road to a successful Accountancy Business acquisition, click here to get your copy now!   

Because due diligence is a priority and not doing it could de-rail your chance at success!

Best Wishes,

Stephen Hagues

PS. After taking 10 minutes to read our eBook, don’t be surprised to learn that there is more information to unlock on your road to Accountancy acquisition. If you want to make that road even more smooth sailing, then click here to have a no obligation chat to one of our highly trained consultants who can help you protect your future investments.

When it comes to that time in life and you are imagining the joy of never having to be rudely awakened by your alarm clock again

It is all too easy to be clouded by the luxurious thought of retirement

I can hear you now

Gosh it is going to be wonderful

I can have more time with my family

I can enjoy my hobbies with my newly acquired freedom

And of course I cannot forget about that juicy cash pot at the end of it all

But stop thinking about the rewards for a second

How did you get to your paradise

Before you let yourself become seduced by all those beautiful apples in the garden of retirement

You need to think about the journey to your very own Eden

But beware you don’t miss-step

Otherwise the deadly sins of selling will set you up for a very big fall

Dont unwittingly con yourself out of thousands of pounds by being caught off guard

Download our eBook on The Seven Steps to Selling your Accountancy firm by clicking here to recognise these deadly sins and avoid them

92% of sellers we surveyed confessed that whilst they didn’t think it would be easy selling their accountancy business

They were struck by a glancing blow at just how easily they fell prey to

Little or no preparation

Fish and chip Charlie offers after due diligence

Taking a hands off approach

Failing to pre-qualify buyers

And, it doesn’t stop there

If it was you and your exit experience

I am sure you would be guilty of falling into the same traps wouldnt you

After all this though the majority of frustrations and challenges that you will face within your exit strategy can so easily be avoidable

By investing just 10 minutes of your time now into reading our complimentary eBook, click here to discover why seizing the first cash rich acquirer is not always the best

You could find yourself without an accountancy business and with nowhere near the remuneration of what was offered to start with

An offer that actually if you think about it

Wasn’t a divine offer in the first place

So don’t let the snakes rob you with their surprise attacks

Click here now to download our eBook and together we can thwart those pesky sins trying to darken your Retiring experience

Best Wishes

Steve Hagues

PS. Want to throw a little light on the subject

Click here to read the Five Golden Rules to selling your accountancy Business

When thinking about your future Accountancy exit strategy I can imagine it stirs up a lot of emotions within you

One moment you are feeling the emotional highs of excitement and the thrill of satisfaction

The excitement of going out and finding that perfect acquirer

And the obvious satisfaction connected to the financial wind fall from the sale of your Accountancy Business

But with the highs come the lows

And it is also true that on the journey through your Accountancy exit process you will feel the plummeting lows of loss and grief along with fear and second guessing

No doubt you will have thoughts such as

What will I do with all the extra time and An empty calendar equates to an empty life

And on top of that you worry that you may lose your identity and loss of community

As no doubt you will have built strong friendships with your work colleagues and clients

I need to tell you that these range of emotions are completely natural when it comes to going through your exit strategy

However you cannot let any of them affect the process

Becoming a slave to your emotions can greatly hinder a successful outcome when negotiating on terms for your Accountancy Business so the rule is

Never become emotional in your negotiations

If you click here to download our eBook we can show you the 9 Key Steps to helping you through your negotiations

Because letting your fears and second guessing can lead you to

Develop a weak state of mind

Which leads to you not being able to deal with the task at hand

Which will inevitability lead to you talking your way out of a premium cash rich offer

But by clicking here now to download our eBook you will see how building up a trusting and reliable relationship with potential acquirers can

Assist your understanding with other points of view, without being biased by emotion

Which as a result can help you achieve a higher level of success in getting what you want out of your exit

Best Wishes

Stephen Hagues

PS. Letting your heart rule your head

Click here for our eBook now to read the 9 Key Steps on how to negotiate the best possible outcome for your Accountancy Business

Imagine selling your Accountancy business

It is one of the most important business decisions you will engage with in your life

And is definitely something you will hope to only be doing once

Unfortunately there are several recurring and crucial mistakes we observe Accountancy owners repeatedly making in the open market place

After over a decade of experience we consider the following three questions as the most important 

1 Are they really serious about acquiring

Primarily it is key to avoid insatiable buyers or buyers who are merely dipping their toes in the water and lack the proper conviction to acquire

When the cost of the process starts to outweigh their misguided and shallow perception of the benefit a failure of completion is more than likely wasting not only your time, but also your money

On the flipside there are many ambitious firms in the market that have clear set goals with a strong vision of how acquiring a practice can help them achieve their strategic goals 

2 What is the typical acquisition profile

Once it is clear that a firm intends to grow by buying others the next step is to figure out what they want to acquire

Does their acquisition history uncover trends about size and stage of targets

If a company generally buys some for £200,000 and others for £2 million how does that mesh with your company make up

Aside from the market cap what other metrics types of revenue head count stand out

Translating those major patterns into a justified window of opportunity is a critical second step

3 Funding

Are their eyes bigger than their stomach  

Unfortunately it is the Accountants who are most confident about their funding situation that tend to have difficulties down the line

It is important to secure from the buyer at least a letter of commitment and avoiding drastically wasting your time

Knowing the ability, frequency and buy-profile of potential acquirers not only conveys that an exit is your goal, but contributes substantially to shaping your business to meet that goal one day

Your acquirers are thinking about it, and so should you

And if you want to avoid getting a premium offer and valuation on your Accountancy business you won't want to  click the link here and watch a video that explains how to avoid the two costliest mistakes made when selling

Nearly 50% of sellers make at least one of the two mistakes outlined here which immediately stops them from leveraging a premium price

The 10 minute video also discusses how to spot the four most unsavoury characters that you should NEVER sell to regardless of their responses to the aforementioned questions

Best wishes

Steve Hagues

PS Discover how to avoid the two costliest mistakes made when selling Accountancy practices here

…Have you actually really thought about your perfect exit strategy?

 If so…What do you want it to be?

 Smooth Sailing…With no stress?

 And, what do you want to gain?

 A cash rich acquirer…

 …who can offer a healthy clawback provision?

 And, keep your clients happy and provided for, in the way they are accustomed too?

 I know what you are thinking…”It sounds too good to be true”!

 Well it need not be just a dream…

 It could be a reality!

 But you have to put in the effort it takes to achieve what you want…

 … So are you ready to challenge yourself to get what you want?

 If the answer to that is yes then click here to download our eBook on The Seven Steps to Selling your Accountancy Business.

 Reading our eBook can give you the fundamental knowledge that you require when it comes to achieving the exit that you want and it will only take 10 minutes of your time so click here now to start learning how to get what you want!

 After having a good think about what you want, can I take a wild stab at presuming that you replaced the word ‘want’ in your head with ‘need’?

 I need it to go smoothly… I don’t need the stress of a long drawn out process!

 And,

 I need that cash rich acquirer… How else will I survive my retirement without the funds to do so?

 Well, I’ll tell you what you want, what you really really want…

 … What you want to achieve with what you think you need, in terms of the perfect exit strategy can end up having completely different outcomes to what you envisioned and what you desire!

 By clicking here to download the eBook I will show you why needing to reel in that perfect cash rich acquirer could end up leaving you with a mediocre result on your Accountancy Business exit…

 … Because you shouldn’t trust or want to accept the first offer that comes along!

 Why?

 Because whilst you are busy assuming that they can give you what you need…

 … They are already thinking about how they are going to short change you in the long run!

 Best Wishes

 Stephen Hagues

 PS. Want some real advice on the value of your Accountancy business? Click here to speak to one of our top experts who will guide you to getting exactly what you want out of your exit strategy!