Many accountants are also opting to buy their own firms because they no longer want to work for somebody else. However, that’s only possible with proper valuation. This guideline provides you with the most effective resource for not only valuing, but also selling your CPA firm.
By March 2020, the 15 leading accounting firms in the United States earned around $70 billion in revenue in the last year. The amount could be more, considering that only 13% of the country's residents aged 30-49 years used accounting services in the previous year. The demand for accountancy services is high. Consequently, big firms are buying smaller businesses. Many accountants are also opting to buy their own firms because they no longer want to work for somebody else. However, that's only possible with proper valuation. This guideline provides you with the most effective resource for not only valuing, but also selling your CPA firm.
1) A good understanding of your business
No resource is as more potent as a good understanding of your business. What has made your business successful? Do you know the factors or reasons behind its profitability or lack thereof? Auditing and filing shouldn't bog you down too much to the extent of leaving you with little or no time for marketing and growing your business. Two factors that can enable your growth include technical talent and a culture of exemplary client service. While at it, look for the barriers to growth as well. These could be anything from lack of good processes to disorganization around growth. Lack of training, talent, and technology hinders growth, too.
2) Knowledge obtained from observing your competitors
You should remember that your CPA firm doesn't operate in isolation. It's in a highly competitive field. For this reason, spare some time to study your competition. Check what they are doing. By doing that, you also get a glimpse into the direction the industry is going. Measure yourself against the competition to learn where you fall short or perform well. Don't forget to identify opportunities that your firm can take advantage of, too. More importantly, look into ways of collaborating with another firm that does what you're doing, as long as it doesn't compete with you directly where you operate.
3) Fierce marketing
Now that you know everything you can about your competition, you should use this information constructively. Everything that you understand about your business should help you to market the CPA firm fiercely. Use this treasure trove of information to spread the news about the business. Make your firm irresistible. Give prospective buyers one or more reasons for paying top dollar to get their hands on the business that you've sweated blood to build. Furthermore, prepare a marketing plan. Remind buyers that you're offering the opportunity of a lifetime. Urge them to act while the offer lasts.
It's worth mentioning and reiterating the fact that you have the most powerful resource for valuing and selling your CPA firm. The knowledge in your head, business records, and documents should help you to attract high-quality buyers. Don't forget to market the offer as repeatedly as you can. That way, the world never forgets that something golden is available for purchase. As you do all that, never forget to consider a price that fits your future goals, too, especially if you're selling to raise funds for retirement. An offer is only as good as your financial plans.
