“Don’t simply retire from something; have something to retire to.” ~Harry Emerson Fosdick
Make the most of your CPA practice.
A little planning can make a huge difference. Here are 7 relatively simple things you can do to get your firm in shape and get ready for the next chapter.
1. You only have one chance to make a first impression. Get your office looking its best…especially the reception area and the owner’s/partner’s offices. Fresh paint and a little carpeting or flooring can go a long way.
2. Paper files stacked everywhere are a turn-off. Buyers want to be able to follow what’s been done in the past. The office needs to be efficient.
3. Bring your books up to date. You need to show that your practice remains healthy and hopefully growing.
4. Clean up your accounts receivable. Slow paying clients can really bruise the impression buyers have of your practice. This also brings up another matter which you may or may not want to tackle. Do you need to clean up your entire client list? If you have time and energy to focus on this, it can have a big payoff. To learn more, check out The Client of Choice.
5. Be clear about your reasons for selling. Buyers will want to know. The quote at the top is very true. Something needs to be pulling you out of the practice.
6. Understand what your practice is worth so you can better plan the best time to sell. Asking a fair price is key to generating healthy demand and getting your firm sold. If you are not financially ready to let go of the income from the practice, then you are probably not ready to sell your CPA firm.
7. Cash really is king – It’s important to remember that a buyer is likely to have debt service payments on the acquisition loan. The cash flow available after paying their note will have a significant impact on what buyers are willing to pay for your firm.