Are you a CPA or EA and considering buying or selling an accounting practice? If so, finding or presenting an accounting practice for sale can be a difficult and emotional process.

With a little research and information gathering you can make the process painless.

First and foremost, if you are planning to use a broker I highly recommend you carefully select and interview the broker you are considering. This includes checking references and talking with colleagues.

Although there are good brokers out there that can bring qualified parties together such as CPAs (Certified Public Accountants) or EAs (Enrolled Agents), there are also brokers that hype the seller into believing he or she will get an unrealistic price with a bevy of qualified buyers. In the end, it wastes a lot of time for both the seller and buyer.

What A Buyer Should Consider:

• What location do you want to practice in?
• How long has the practice been established?
• What is the mix of clients (i.e. tax, bookkeeping, auditing, etc.)
• How does the price compare to the price of other comparable firms?
• What is the personality of the owner and has does it compare to your own? Believe it or not, the client base often emulates the personality of the owner. If the owner appears to be flakey and disorganize, you can bet a large group of the client base will have similar traits.
• What is the longevity of the average client?
• How do the fees compare to market rates?
• What is the quality of the workpapers?
• How does the expertise of the firm match with your own expertise?
• What is the designation of the firm (CPA, EA, etc.) and how does that mesh with your own designation?

Finding an accounting practice for sale is easy, finding a practice that you really like and is a good fit takes a little time and effort.

What A Seller Should Consider:

• How experienced is the buyer?
• If there is a guarantee, how likable is the buyer?
• If you are financing the deal, what is the credit of the buyer and can he/she retain clients?
• Does the buyer have the financial resources to make the purchase? I highly recommend you qualify the buyer upfront to save time.

Hopefully these brief tips give you some ideas. Presenting your accounting practice for sale is not difficult but finding the right buyer can take a little time.

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Selling a Practice - Straightforward Answers to Tough Questions (Hardcover)
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