In this episode of Life In Accounting: The Where Accountants Go podcast, David Sweeten, CPA and Eric Arroyo, MBA from Business Brokers of Texas share their expertise on buying and selling accounting firms and businesses in general. We have discussed buying practices as a good way to begin or grow a business a few times before (see below), but today we will get into more details of how the process truly works.
Buying Considerations
Accounting practices are always very valuable, and they will sell. When you have a serious buyer, the sale will happen quickly. When buying a business, make sure to explore these factors:
- Age of seller
- Accounting and tax software used
- Geographical area of the clients
- What types of clients to you want
- Fees currently being charged
- Gross income desired
Why Use a Broker?
The benefit of using a broker like Business Brokers of Texas is they make sure the deal is fair for all parties. A broker is available to add objectivity to the process. The process can take a while sometimes, and the broker effectively serves as the matchmaker between the two parties. They are very experienced at structuring deals. They control all of the issues so you can continue working. They also maintain the confidentiality of the transaction, which is a big benefit. Another consideration is customer retention. If the transition between buyer and seller goes smoothly, you can retain the vast majority of clients (over 90% typically).
Other podcasts mentioned in this interview:
- Dale Ross, CPA and Mayor of Georgetown
- Debra Seefeld, CPA – Building a Practice & Insights on Peer Review,
- Derek Schriver of Schriver Carmona – The rest of the story…
- Chris Carmona – Building a Firm and the Importance of Family
To listen in on this interview with David and Eric, please use the player below:
Podcast: Play in new window | Download
Subscribe: Apple Podcasts | Google Podcasts | Spotify | RSS
