In today’s episode of Your Next Big Move, Zoran is joined by Mark Attard. Mark has been selling businesses for over 13 years and has been involved in selling many accounting practices. Thinking of buying or selling an accountant practice then this episode is for you.
They talk about the specifics of accounting practice sales, valuations, and preparation on the part of a potential buyer.
Accounting practices are more stable than other industries. They rarely fold, don’t change ownership often, and sales tend to happen when owners retire. This is usually after much consideration and contemplation because most accountants’ personalities are methodical and careful. In addition, the nature and culture of the business often contain high levels of commitment and longevity.
Purchasers do well to consider the common situation where the original owner wants to stay involved for longer than is typical in other businesses – often over a year.
Mark shares details about other standard practices in the industry, assessing risk, evaluating clientele, and the pros and cons of determining price based on revenue instead of profits.
Client retention in the accounting world is high, especially when the potential buyer has similar commitments and values as the seller. A buyer can also look at whether the accounting firm has expertise in tax compliance and government assistance, indicating that the firm will quickly attract more clients.
Zoran asks Mark about the current market for accounting practices, and they discuss why advertising often isn’t necessary, opportunities move very quickly, demand is increasing all the time, and prices are being driven upward.
So why buy in these conditions? Zoran and Mark share their wisdom and expertise on why buying is often advantageous and how waiting can equal missed opportunity and missed profit.
They discuss how purchasing a practice that has existed for a while means buying the previous growth time and current clientele.
Geographically, accounting practices are more sought-after in populated locations like the Sydney Metro area and capital cities. However, regional areas don’t have a shortage of buyers by any means.
Mark also speaks on how the appraisal process looks in this market and how he helps buyers by being a sounding board and assisting in valuation and appraisals.
In future episodes, we will be covering all aspects of Mergers and Acquisitions, buying businesses, selling businesses, exit strategies, and numerous other subjects that will help you gain a better understanding of business purchasing, succession planning, and many other aspects of business ownership in today’s market.
[0:50] Why People Sell Accounting Businesses
[3:30] Client Retention through Transfer of Ownership
[10:10] Considering Revenue in Valuation
[19:50] The Demand for Accountants
[23:12] What Practices Sell For
[30:29] Ensuring the Firm’s Ongoing Success
[34:38] Who are the Buyers
Our company website – https://www.xcllusive.com.au/
Connect with Mark on LinkedIn – https://www.linkedin.com/in/sydneybusinesssales/
Connect with Zoran on LinkedIn – https://www.linkedin.com/in/zoran-sarabaca-bba2a38/