Should I actively try to hire new team members while my accounting practice is for sale; or, is it better to wait and leave that to the buyer?
Our general recommendation is that when selling, the best practice is to run your firm like it’s yours until it isn’t anymore. Depending on the marketability of your firm, it may take a while to find the right buyer to purchase. You may have to live with your practice as it is for a while. Are you willing to go through next tax season without that key hire? If so, then ok. If not, then start searching for that new hire.
When potential buyers evaluate an accounting practice, they aren’t just purchasing client lists or revenue streams—they’re looking to acquire a thriving, sustainable practice. A well-staffed team of experienced and competent employees is part of what buyers are searching for. Prospective buyers want to know that the transition of ownership won’t disrupt daily operations, client satisfaction, or revenue generation.
Hiring capable staff ensures that the practice can carry on smoothly, even with new leadership at the helm. This stability reassures buyers that they are not buying a firm with a single point of failure (you, the seller), but a robust operation capable of thriving with minimal disruption. I.E-most buyers want good staff.
Surveys of accounting firm owners consistently rank finding good staff as one of their top challenges. It’s a cliché because it’s true. It really is hard to find good help. This is unfortunately especially true in the accounting space as fewer and fewer people are graduating with a CPA. If you are able to bring on people who are excellent at what they do and they will help to improve the client experience, then that’s highly likely going to be a big plus to your buyer as well. We can recommend a great resource to help with the hiring process. If you’d like a no-nonsense hiring guide, check out The Hiring Advantage by Gina Pellegrini and Jason Smith.
If your firm is on cloud software, sometimes making hires outside of your geographical area can speed up the process of finding good qualified help. This is true even if the majority of your team is in office. Broadening the search could land you someone far more quickly. There are many resources out there that can help you manage remote employees if it is new to you. It is also worth considering possible admin hires over professional CPA hires to free up the time of your more seasoned staff. This could be a great way to create capacity. Anything you can do to reduce owner dependence on the practice is going to better your odds of a higher valuation.
If you already have a buyer, consider getting their input. Once your practice is under contract with a buyer, it’s wise to involve them in key decisions. Hiring key people would definitely be something that would impact the buyer. We wouldn’t suggest that the buyer be involved in the interviewing process, because it’s best not to disclose to existing staff or potential staff that the practice is being sold. That said, you want to consult with your buyer on this decision and let them have some input. Hopefully, the buyer’s involvement brings additional value to the hiring process.
About Brannon Poe: Brannon is a CPA and the founder of Poe Group Advisors and has been facilitating successful accounting practice transitions throughout the US and Canada since 2003. Brannon started his career in public accounting as an auditor with Ernst & Young before working for several years in auditing and tax preparation for the regional firm of Elliott, Davis & Company. He is the author of “Accountant’s Flight Plan: Best Practices for Today’s Firms” (published by the AICPA and CPA Canada), “On Your Own: How to Start Your Own CPA Firm,” as well as multiple blogs and the “Accountant’s Flight Plan” podcast.
