Q. What factors will go into determining the value of my firm?
A. Factors that will help determine the value include: client base, profitability, types of services, technology investment of the firm, employee retention, and billing rates.
Q. How long will it take to sell my CPA firm?
B. Typically, the larger the firm, the longer it takes to sell. Smaller firms can sell in three to six months. Larger firms can take nine months or longer to sell. Firms in rural areas could take longer to sell as there may be fewer buyers.
Q. What types of buyers will be interested when I sell my CPA firm?
A. Younger professionals looking to expand their practice may be interested in an instant client base. Larger firms purchase CPA firms to grow their business, geographically diversify, or expand their services. You can position yourself to find the best buyers for your firm.
Q. What should I tell my client base?
A. You don’t necessarily have to tell your clients until the sale is final. Informing clients earlier could cause them to leave which could reduce the firm’s value. When you inform your clients, giving them confidence in the new owner is your primary objective.
Q. When should I tell my employees?
A. Your personal circ*mstances will contribute to your decision. You want to strike a balance between not informing them too early or too late. If you can keep it confidential until you have a signed offer, potentially inform your staff then. You want to retain your employees as they have the skills and client base knowledge.
Q. Do I need an attorney?
A. When you sell a practice, you will want to hire an attorney. Your attorney can prepare and review the documents to ensure the transaction addresses the proper points and meets the legal requirements.
