Buyers looking to acquire a CPA practice for sale have already done the deep analysis and concluded that to receive financing, efficiently achieve their profit goals, and create the level of earnings to support their desired lifestyle, buying an already established firm is the smart move. Assuming the accounting practice for sale is on solid footing, ready to be taken to the next level by a fresh outlook; what can kill the deal is the mismanagement of the psychological elements of the sales process.
The sales process is rife with a mix of emotions, both positive and negative for all involved. Selling a CPA practice, as well as buying one, is both a professional and a personal high stakes decision, that like any business deal carries risk. While CPAs are almost always analytical – it is in our DNA, the psychological aspect can help as well as prevent making the deal for maximum market value, with the most cash at closing.
The Psychology of Preliminary Value
Sellers should have a clear understanding of the value of their CPA services and how to market them to attract the right clients. It’s their business. Sellers, however, take on unnecessary risk of leaving money on the table when they do not recognize that this expertise does not naturally translate into successfully valuing their firm.
The combinations of analytical variables, such as profitability, specialization, or location that build demand and therefore increase the value and ultimately the sales price for a firm are potentially infinite. You may have a notion of just what your CPA practice could fetch. But remember; it is just a notion. The psychological and deal-making variables such as the strategies, expertise, and inherent raw talent and ability of the person or company promoting, marketing, and negotiating the sale of the accounting practice will ultimately determine the final value.
We strongly advise not selling your accounting practice to anyone, including a partner or employee, without definitively appreciating what your practice is really worth. We would be more than happy to help you determine the right asking price for your practice. We charge nothing for this service and there is no obligation for you to utilize our accounting acquisition business brokerage services.
The Psychology of Maximizing the Market Value
Maximizing the market value in the sale of an accounting firm, that is ready to sell, is all about setting the right psychological conditions with the right strategy. The key to maximizing value, with the most cash at closing, with the least contingencies is ensuring competition between prospective buyers.
The quality of the promotional and marketing effort performed will dictate just how many potential qualified buyers will know the value of your CPA practice and that you are ready to sell. If you reach just a handful of qualified buyers, the competition will be negligible, and the few offers produced by the effort will almost certainly be well below the maximum market value. That would mean leaving money on the table, before you even accept an offer.
Now imagine if you could reach the entire market of legitimate buyers. We have painstakingly created and developed our proprietary database resulting from continual extensive market research that contains literally thousands of legitimate qualified buyers of firms of all sizes, for all specializations.
When a buyer knows several other buyers are earnestly pursuing the same CPA practice for sale, they know they will need to offer at least maximum market value, and promise the most cash at closing. A buyer without competition feels he/she can offer less than the full value of a business, less cash at closing, and dictate contingencies.
The Psychology of Negotiating and Closing the Deal
Most buyers want to buy a CPA practice for sale that they can actually envision themselves working at. After an offer is accepted, there will necessarily be some intensified contact between the seller and the buyer for due diligence and understanding whether the buyer is really the right fit for the firm.
Coming from the perspective of the buyer, if the seller is impolite, abrupt, combative, or nagging about aspects of the deal, despite solid analytics the buyer may walk. Conversely, from the perspective of the seller, if the buyer displays any of the above negative characteristics, the seller might be led to believe the buyer will destroy the client relationships and the work environment that was years in the making, and kill the deal.
The probability that this potential gnashing of teeth will end in impasse exponentially increases if the seller and buyer are negotiating the deal on their own, without the services of an accountancy broker. An experienced broker provides the buffer, minimizes problems in the negotiation, keeps everyone at the table, and reduces exposure to risk. If either party walks away because of an ill-chosen word uttered at an inopportune stressful moment, there is little possibility of renegotiation.
At Accounting Broker Acquisition Group, we have negotiated hundreds of accounting practice acquisition transactions involving many millions of dollars in value throughout the nation for sole proprietorship, small partnerships and larger firms.
We are like no other. Accounting Broker Acquisition Group is the only national business brokerage of its type, 100% comprised of brokers who are CPAs with significant “Big Four” merger and acquisition experience.
We have proven time and time again that our marketing and negotiating methods get the maximum market value possible, with the most cash at closing. We have the largest database in the nation of buyers who are looking for an accounting practice for sale and are willing to compete for your CPA practice.
No business brokerage in the nation is our equal when it comes to maximizing value when you sell your accounting firm.
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