Using a specialist to sell or merge your accountancy practice comes with many advantages. Firstly, they understand what the buyers in the industry are looking for and so are in an excellent position to provide you with advice about how you can make your business more attractive, which should in turn lead to a better sales price. As a specialist in your sector the broker will have a high-quality buyers list and will be able to match your requirements with the best of the buyers that are in the market looking to acquire. Additionally, choosing a broker that understands the ins and outs of an accountancy practice means they are more likely to know what objections a potential buyer might use to try and negotiate the price and so will be able to offer you advice on the reasonableness of any offer. Confidentiality is often a key requirement when selling an accountancy practice and a specialist broker will understand your need for this. A good broker will go to great lengths to protect your identity in the marketplace until you are ready (or not) to reveal that you are selling your practice. A specialist broker in your sector will also understand that there are multiple ways for you to exit the practice if that is what you want to do. It doesn’t always have to be an all or nothing scenario and this also helps them match you to the perfect buyer. This cuts down on time lost through buyers not fully understanding your exit strategy and should reduce the time required to complete a deal. As you don’t usually pay the sales fee when using a specialist broker to sell your practice then you really have nothing to lose but everything to gain using a good broker. They should help take away the stress, be able to reassure you throughout the sales process and offer advice and solutions to make sure the deal is completed and everyone is happy with the sale.

It's never too early to start planning!

Making sure you get your due diligence process right could save you a lot of hassle and problems further down the line.

If you decide to sell your accountancy Practice, then a key decision in the process is whether to make it an asset or share sale. There are pros and cons to both approaches and here we look at what you should consider when deciding which is the best option for you.

When you’re looking to grow your Practice do you consider the traditional marketing strategies of market penetration, product development, market development and diversification or do you just carry on with the day to day work and hope potential clients see your website or office sign and give you a call? In the current climate, hoping for the best might not be good enough, and if your client base is being hit hard by the current trading conditions, proactively increasing your fee base is a necessity not a luxury. When other accountants are running to catch up you could be ahead of the pack, so when the downturn ends (and it will) you are well placed to capitalise on the business that’s available. A straightforward way to increase the size of your Practice is to buy a block of fees or take over another practice. A simple but effective market penetration strategy used by companies the world over and there are certainly plenty of opportunities in the accountancy marketplace at the minute. Many of the more traditional sole traders have decided that with the current pressures, on the back of the challenges of MTD and the increasing requirements for operating in a digital world, now is the right time for them to exit the industry. This increase in the number of practices available provides more scope for buyers to be selective, allowing them to choose to buy a practice that has the best fit with their current operation. As there are also many smaller practices being sold at the minute this is also an ideal time for accountants who wish to run their own practice to consider going it alone. Buying an established practice, with a client base already in place, takes away the uncertainty of how long it’s going to take to achieve the turnover required to support financial needs. And many of these smaller practices have the scope to be developed, increase revenue and maximise profit with some simple changes. So, if you thought the middle of a pandemic wasn’t the right time to expand your business, or start your own business, then think again. To find out why this might be the perfect time for you then talk to us about what you would like to achieve and we can help you find the right opportunities to achieve your goals. Contact us at practicesales.co.uk or call 01823 765085 for a chat.

It's not all about you! Why your name isn’t always a good thing. When people start to think about selling their Practice it’s easy to believe that it should presented to the market exactly as it is. However, with some simple planning and preparation you should be able to maximise the value of your Practice and increase the sale price. One simple way to do this is through the branding of your Practice. Many practices have embraced the name of the founder/owner/ managing partner as their branding. This is fine, but ideally you need clients to be loyal to a brand, not to an individual. Loyalty to an individual can cause issues when a practice is sold and lead to a higher attrition rate of the client base, which can affect clawback. Good branding, however, can increase the value of a practice and make retaining and acquiring new clients easier. If you think all of this sounds like a lot of effort and expense for a practice you are about to sell then think again. You don’t need to spend a lot of money to achieve a rebrand and you’ll certainly get a good return on your investment. Creating a fresh brand and updating your web presence has become easier and more affordable in recent years and if you already have a prospective buyer you could work on a rebranding strategy together and share the costs. Once you have your brand then get straight to work on developing your brand loyalty. A simple way to do this is through regular client communication. Newsletters by email are an easy way of staying in touch with clients and any potential buyer will be impressed with effective brand communications as it means they can continue to be in regular contact with clients once the sale is completed. Here are a few simple steps that you need to take to change your brand Define your target audience What are the characteristics of the majority of your client base? Are they mostly one man bands or do you specialise in a particular market segment, such as hospitality? Define your brand mission This is what your company’s objectives are and how you will serve your clients Research the competition See what others in the market place are doing, what does their branding look like and what sort of services do they offer? Create a value proposition This is what services or feature do you have that makes your accountancy Practice attractive to clients. Simply put – why would some choose you? If the thought of doing these things yourself brings you out in a cold sweat then you can always get someone else to do it for you. Perhaps one of your team might be interested or you can outsource to a specialist. Set a budget and then talk to a few providers in your local area, or go online to sites such as people per hour and put the job out to bid. Branding is just one of the things you can do to make your Practice sale ready. If you would like to know what other simple steps you can take to maximise the value of your Practice then visit our website for more information.

A recent survey by AccountingWEB on the wellbeing of accountants has revealed that a combination of long hours, the overwhelming effects of coronavirus workload and the stress of helping clients has had a negative effect on mental health and wellbeing. The sheer deluge of work appears to have taken its toll and although many said their health and wellbeing was now recovering, now that many of the government schemes are ending, others admitted to feeling “burned out”. Many accountants are now asking themselves “what now?”. M  any industry experts believe that the only way forward is for accountants is to embrace the digital world and the COVID-19 situation has only served to highlight that it is now possible to fully collaborate with clients through cloud products, online digital communications and apps. Having the right software to support compliance obligations will also be a vital part of any accountancy practice as HMRC moved to digitised submissions. Keeping up with this type of fast paced environment will not suit everyone and for those already feeling the stress and pressure of the last few months now might be the right time to think about the future of your practice and your role within it.