Having a Buyer vs. Having the Buyer
There is a big difference in having a buyer and having the buyer. Almost anyone can come up with a buyer or two…or even three.
What you must keep in mind is that every single buyer will value an accounting practice differently. Ultimately, the value of any business is going to be the present value of the future cash flows. The future cash flows are going to vary based on how the practice is operated….this is where having THE buyer comes in.
The key to maximizing the value of an accounting practice is to find the buyer who does all or most of the following:
- Understands how he/she will succeed in that particular practice.
- Has the capacity or the team to provide excellent client service.
- Is willing and confident about taking a few chances.
- Has a personality that staff like and respect.
- Has a personality that clients like and respect.
- Is motivated to buy.
- Knows how to ask great questions.
- Will work hard when necessary.
- Has most of the necessary technical experience.
In short, the buyer should be a strong leader.
Are you buying an accounting practice?