If you are thinking of selling your practice due to retirement or any other reason, we at, MGT accountancy, wish to hear from you.
We always look to expand our practice within or beyond our geographical arena and would like to here if you intend to sell in future.
Things you need to consider when planning to sell.
- Review your charge-out rates. Make sure they are competitive. If you are undercharging and the new purchasers need to put them up, it will act as a obstacle to your benefit.
- Try to ensure your client profile is not concentrated.
- Make sure you do not have an ageing client base. A buyer will see little value in a business made up of clients who are going to retire or die within a couple of years unless they have their successors identified and in place already. A steady stream of new clients is most attractive.
- Look at your internal organization/structure and ensure there re no weak poles‚. When practices were busy, they took on more staff, but as practices have become less busy and more cost-conscious any excess staff can be a real problem for buyers who don't want to get involved with having to make redundancies. Remember, under TUPE the new owner has to take on your staff.
- Get your own house-keeping in order: put your files away, make sure your time sheets are up-to-date and add up, carry out an analysis of your potential bad debts .
- Ensure your systems are fully compliant with Money Laundering, bribery and work within all the related regulatory regimes.
Our Strategy
Due to the fact most of the accounting firms are manned by sole practitioners or a few partners, we are actively looking for smaller practices and blocks of fees up to £100,000 to £200,000. This is also due to the fact that the small firms rarely have idle resources, which acts as an incentives to purchaser.