Is This Your Last Tax Season?

With tax season in full swing the last thing on most accounting and tax practice owners’ minds is buying, selling or merging their firms. But for owners who hope to sell their firms before the 2018 tax season, a year from now, the time to start is immediately after this tax season is finished.

We have found that practice owners who start the selling process in April, May or June are much more likely to have a successful outcome (better choice of buyers, more money upfront and better overall price) than those that wait until September, October or November.

Many practitioners believe that buyers will not want to close a transaction until the fall, or even just before the next tax season, and end up starting of the process too late. Most buyers realize that in a competitive market, the time to buy is when the best firm is available and that is not always on their time line. 

Another reason practice owners miss the sales window is they begin the process as a “For Sale By Owner” and work with only one or two buyers at a time. They start talking to someone about buying in May or June, and then let that process play out all summer, only to find out in the fall that their buyer candidate is either not qualified or not as interested as they initially let on, leaving the seller less time to identify their successor.  

Keep in mind, most buyers see “For Sale Buy Owner” as an opportunity to get better terms from the seller and ultimately pay less. A better way is to work through a process to identify multiple ready, willing and able buyer or merger candidates. This aligns market forces so that you can identify the best successor for your clients (and staff) and ultimately end up with the best price and terms.

Call me directly if you wish to discuss your thoughts on selling, 408-598-3009.


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