6 min read

Valuing a Business: A Look at Seller's Discretionary Earnings (SDE)

By Private Practice Transitions on Nov 8, 2021 1:20:00 PM

If you are in the process of selling or acquiring a small company, you have probably come across the term “Seller's Discretionary Earnings” or SDE. In essence, SDE is the foundation of business valuation for small businesses. It is a crucial concept that enables savvy buyers to gain a deeper understanding of a business’s story.  

Topics: Business Owners Sellers Seller's Discretionary Earnings SDE Selling a Business
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

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

How Much is a Physical Therapy Practice Worth? How to Value Your Physical Therapy Practice.

By Tanya Farmer on Jul 29, 2020 7:46:00 AM

Valuing a physical therapy practice is part art, part science, and part math. Generally, the math and science, which we discuss below, is more easily calculated. It is the art – knowing how to sell a business and to whom – where true value is realized. For purposes of this article, we will discuss the valuation of a physical therapy practice where a controlling interest and/or 100% of assets are sold. 

Topics: Business Owners Physical Therapists Sellers
3 min read

The Two Steps to Selling a Physical Therapy Practice

By Justin Farmer on Jul 24, 2020 7:43:00 AM

In speaking to countless business owners, we know that making the decision to sell your business is difficult. In large part, fear of the unknown can create analysis paralysis and, ultimately, lead to inaction. Yes, there is much that goes into selling a physical therapy practice, but with proper planning, and the right team, most of the heavy lifting will be done for you. With that in mind, consider these two main steps now to get the ball rolling: 1) value your business and, 2) identify qualified buyers that will help you realize that value.

Topics: Business Owners Sellers Physical Therapy Business Valuation
3 min read

What Is My Business Worth?

By Justin Farmer on Apr 23, 2020 7:40:23 AM

 

 

Topics: Business Owners Sellers
2 min read

The Paperwork You Need When You Sell a Law Practice

By Justin Farmer on Apr 20, 2020 2:04:00 AM

For years lawyers could not sell their law practices because it was considered unethical. The prevailing theory behind deeming the sale of a law practice unethical was tied, in large part, to the client’s right to choose a lawyer and, in practicality, generally left single-owner firms with an asset they could not sell (while large firms were merging, acquiring books of business, etc.). Today, however, it is both ethical and common to sell a law practice, but the structure of the transfer of your law practice, and, thus, the documents you prepare must take the ethical rules into account. Below are some of the most important documents to have on hand once you decide to start the process of transferring your firm to a new owner.

Topics: Business Owners Lawyers Sellers Legal
4 min read

When Is the Right Time to Sell My Business?

By Justin Farmer on Mar 30, 2020 4:14:45 AM

 

One of the most common questions we get from clients or potential clients is: When is it the right time to sell my business? Before I can answer that question, I need more information from you. There are three questions I have for my clients in return:

1. How much longer do you want to work?

Topics: Business Owners Sellers
2 min read

How to Know if a Professional Business Broker is Right for You

By Justin Farmer on Feb 27, 2020 11:20:55 PM

You may already know that when selling your business, business brokerage firms can be quite helpful. Experienced business brokerage firms will screen qualified buyers and help you through the many obstacles you may encounter when trying to complete your sale. In the meantime, you can remain focused on running your business before the sale is final.

Topics: Sellers Business Brokerage
2 min read

Succession Versus Sale

By Tanya Farmer on Dec 12, 2019 5:40:23 AM

In the most recent issue of the Oregon State Bar Bulletin, Lee Wachocki provides a great strategic insight into the option of choosing a successor rather than selling your practice. Our very own Justin D. Farmer contributed to the article, titled “Sales Isn’t The Only Option.” You can read the full piece by clicking here. Following is our own synopsis and comments:

Topics: Sellers Consulting Services Business Succession