It depends on the reasons behind the interest in buying. If people looking to build their own current practice, one client, at a time, or is it a desire to merge with an existing accounting practice and add their client base on their books. Buying an existing practice with a proven track record can often generate enough income to offset the purchase of acquisition and helps in achieving goals sooner. Accounting firms are a highly competitive market. After establishing a larger client base, the individuals will understand clients’ histories, and grow revenue and results. A large roster of new clients is a great source of referrals, as well. Perhaps seekers will acquire staff that is already trained, and the seller will provide with training to get comfortably started on the new business expansion. There are a number of inherent concerns when purchasing an existing practice, such as whether or not the existing clients will remain, and if the practice is priced fairly. Seekers want to know about financing options and what is actually needed for a down payment. Buying process offers a structured approach to helping for sound purchase:
Step 1: Register as a Prospective Buyer in order to identify goals and expectations - existing business structure, along with geographical preferences and available finances to ensure experts focus on practices that are the best fit. Step 2: Identify Practices to Review by looking at the success of practice to determine if it will fit the current business structure and environment. Screen for good matches. Step 3: Review Practice Business Information in order to examine all of the core aspects of the business that are considered. Step 4: In-Depth Interview to further identify in more detail information about the current business, qualifications, goals, and expectations. Determine financing needs. Step 5: Meet the Seller is an important step in determining the ability to make a connection with the seller. A seller usually wants to ensure their business is being turned over to someone who will treat it with care. Step 6: Prepare an Offer if there is a mutual interest. A Letter-of-Intent covers the essential elements. It will be presented to the seller. Step 7: Prepare the Financing/Loan Package by identifying appropriate lenders. Step 8: Negotiate Additional Details facilitated with both parties since tension can arise and will need to be de-escalated in order to negotiate a fair deal for everyone. Step 9: Perform Due Diligence by performing an adequate investigation prior to closing the sale. Step 10: Draft a Purchase Agreement that spells out everything and is enforceable. Step 11: Close the Transaction is when the funds are exchanged, documents are signed, and the deal is completed. Step 12: Start the Transition: The most important step. Plan conversations with clients and staff that will coordinate a successful transition and get things off to a good start.
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