Practice Broking
Practice Assets that are Typically Transferred upon Sale
A couple of recent practice sales reminded me that not everyone is necessarily aware of all the assets or items that are typically incorporated within, and transferred as part of, a practice sale. Hence, I thought it may be helpful to outline some of the common inclusions and the prep work that is required in…
Read MoreThe Current Transactional Market for Practices – What We Know Today!
For around twenty years now the professions have been preparing for the increased departure of practitioners as the Baby Boomers hit retirement age and during this time there have been a couple of factors that have been influential upon this expected trend. One was frenetic activity of the consolidators and aggregators amongst the accounting profession…
Read MoreStaff Culture and Management Key to Successful Practice Sales
One of the primary drivers, in addition to growth, for the current acquisitions of practices / fees is the desire by the purchaser to also retain any professional staff that may currently be employed in the practice for sale. This is also generally a key criterion for selecting the right purchaser with most vendors telling…
Read MoreThe Forces Driving Small & Sole Practitioner Firms to Sell
I recall a report that was published within the profession some three, four, or even perhaps five years ago, suggesting that something like 51% of equity holders within firms at that time, would be heading for the door over the coming five or so years. Fast forward to today, and whilst that event may not…
Read MoreIs Everyone Suited to Buying a Practice?
The short answer is no! A question I often ponder is ‘is everyone suited to being a business owner or are there some individuals that will always be better suited to being employees?’ Importantly, there is no criticism of either. However, I have just always thought that running a business is not for everyone, particularly…
Read MoreCompleting the Sale of Your Practice Doesn’t Finish at the Exchange of Contracts
Are you in the process of selling your practice? Have you found a purchaser and exchanged contracts? Congratulations if you have! However, please know that this is not the end of the process. There still remains some very important activities that need to be performed in the anticipation of settlement and depending on how much…
Read MoreHow do We Determine ‘Maintainable’ Fees or Revenue when Negotiating a Practice Sale?
This is often one of the hardest conundrums for particularly vendors, and we have certainly seen some interesting approaches. I think the first point to note is that generally the vendor, in our experience, will be quite conservative about what fees they feel will transfer across to the prospective purchaser. Now, I have certainly heard…
Read MoreFactors that will Adversely Impact the Sale of Your Practice
As you can imagine, I get to speak to many many people looking to sell or buy professional practices, and it often intrigues me as to what some parties may consider favourable attributes or characteristics when in reality they’re actually not. Now, please let me preface this with, the following examples are not intended to…
Read MoreFive Do’s and Don’ts When Selling Your Practice
Selling your professional practice comes with numerous challenges that should never be underestimated. Achieving a successful outcome, or otherwise, will often be driven by how familiar both parties are with the process, their knowledge of current market conditions, their willingness to be reasonable within their expectations, and their availability of time to work through the…
Read MoreSupply & Demand – The Basics Driving Practice Pricing
So we all know and appreciate the basics of supply and demand. This has been a principle that has been influential upon the transactional market, of particularly accounting firms, for many years now. Essentially, the availability of accounting practices for sale in the open marketplace in many core areas throughout Australia has been limited for…
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