2 min read

What is Goodwill and How Does One Transition It?

By Justin Farmer on Sep 20, 2021 11:35:00 AM

It is common sense that a business is worth more than its tangible assets, but appraising that extra, invisible value can be tricky. Elements such as reputation, customer base, existing networks, and brand recognition all contribute to the value of a business without ever showing up on the balance sheets. When a business is bought and transitioned, those nebulous, intangible assets are lumped together as something called “goodwill.” And, ironically, goodwill is often one of the largest components involved when calculating a business’s final market value.

Topics: Business Owners CPAs Goodwill
2 min read

CPA Practice for Sale! Tips for a Successful Purchase Process

By Private Practice Transitions on Feb 2, 2021 11:31:00 AM

If you have an accounting business for sale, you are likely concerned about how the sale will proceed and if the sale will ultimately be successful.

The good news is that there are many resources available to ensure the sale is a success and to make the entire process much easier for you. Below are a few helpful tips to keep in mind if you have a CPA practice for sale.

Topics: CPAs Business Brokerage Accounting
2 min read

Common Misconceptions When Selling an Accounting Practice

By Tanya Farmer on Oct 7, 2020 2:18:08 AM

Selling an accounting practice is something most business owners do only once. Due to the fact that most accounting practice owners have never embarked on such an experience, knowing what to expect can cause fear and skepticism in moving forward with a transaction. Fear and skepticism, in turn, can hinder the selling process and make it much more difficult to agree on terms. With that in mind, if you are about to sell your practice, below are the most common misconceptions associated with such sales and the truth behind them.

Topics: Business Owners CPAs Sellers Accounting
2 min read

Four Compelling Reasons to Buy an Accounting Firm

By Justin Farmer on Sep 24, 2020 2:00:26 AM

Certified public accountants (CPAs) have two choices when they want to start their own firm. They can start from scratch, purchasing or renting office space, and build their business from the ground up. Or, they can find an existing accounting firm for sale, purchase it, move in, and start running the business. Both options are attractive and hold many benefits for any CPA. However, below are four compelling reasons to buy an accounting firm, rather than start one up on your own.

Topics: Buyers CPAs Accounting
2 min read

The Benefits and Challenges of Starting a CPA Firm

By Justin Farmer on Sep 21, 2020 3:36:24 AM

Certified public accountants have two choices after earning their degree. They can strike it out on their own, or they can find a firm that is looking for qualified CPAs. The thought of starting a CPA firm and being in control of your own business may be too good to pass up, and it is true that this option has many benefits. However, there are also challenges that come with being independent, and it is important to understand what those are before you hang up your own sign.

Topics: Buyers CPAs Accounting
2 min read

Selling An Accounting Practice? Avoid These Pitfalls

By Justin Farmer on Sep 15, 2020 3:44:17 AM

A quick look at the statistics shows just how many accounting practices are going to be for sale in the next few years. In the United States, 10,000 people will be turning 65 every day for approximately the next 20 years. Additionally, approximately 60% of all CPA firm owners are over the age of 50 and therefore are starting to think about retirement and perhaps selling their firms. This means the competition for CPA firms is going to be aggressive in the coming years. Anyone thinking about selling an accounting practice must avoid certain pitfalls to give them the edge and sell their practice faster.

Topics: Business Owners CPAs Sellers
3 min read

Should You Buy an Accounting Firm or Start Your Own?

By Justin Farmer on Apr 13, 2020 1:54:27 AM

The prospect of owning your own accounting firm is an exciting one, but it also comes with a dilemma for CPAs. You have two options: You can either venture out on your own and build an accounting firm from the ground up, or you can buy an accounting firm that is already up-and-running. When making this decision it is important to weigh the pros and cons. Below, you’ll find a list of pros and cons when it comes to starting your own accounting firm.

Topics: Buyers CPAs Accounting
3 min read

Five Things to Look for in an Accounting Business for Sale

By Justin Farmer on Mar 24, 2020 4:11:13 AM

When making any type of business acquisition, there is much to consider, and that is certainly true when acquiring an accounting practice. Many people do not know where to start looking for an accounting practice for sale, and searching the local classifieds is not always enough. Websites such as BizQuest, BizBuySell, and PrivatePracticeTransitions.com are a great place to start. Once you find an accounting practice for sale that you think may be a good fit, you then want to make sure that it has the five essentials listed below.

Topics: Buyers CPAs Accounting
2 min read

Steps for Buying a CPA Firm

By Justin Farmer on Dec 18, 2019 5:46:12 AM

There are many reasons you may want to buy a CPA firm. One of the main reasons many CPAs buy an existing firm is simple: purchasing an accounting firm that is already up and running is much easier than starting one from scratch. Buying an existing firm, along with existing operations, also minimizes the risk associated with starting a business because the firm will (a) have existing clients (and therefore work in progress and accounts receivable), (b) have an existing space and infrastructure in place (phones, email, server, filing systems, and the like) and, last but certainly not least (c) have existing staff members. These are just a few of the most critical aspects of any accounting firm and, when combined, create an opportunity that simply is a safer bet than starting from scratch.

Topics: Buyers CPAs Accounting
4 min read

How to Sell an Accounting Practice for Top Dollar

By Tanya Farmer on Oct 25, 2019 2:05:00 AM

Baby Boomers are retiring en masse across all industries. And while the majority of accounting firm owners are baby boomers who are near the age of retirement (65 or older), just as many younger professionals are coming of age and seek to run their own businesses. For the former group, whether you want to retire, semi-retire (perhaps you just want the freedom to travel without firm administration hanging over your head), transitioning the ownership of your firm should be high on your list of priorities. If you are asking, “How can I sell my accounting practice and get top dollar?” you will want to consider the tips below. 

Topics: Business Owners CPAs Sellers Consulting Services Accounting