What Makes Us Different?

✓ we do everything for you

✓ Staffed with CPAs. MBAs, MAs and CVAs

✓ Oldest and Largest Firm in Florida

✓ Over 20 Years of Proven Track Record

✓ Worked with Thousands of CPA Firms throughout the Florida, USA & now Canada. 


The Difference

 

STRUCTURING “THE DEAL”

Here’s Our Recipe For Creating Successful Deals: 

Whether buying or selling your accounting practice the most important issues are negotiated in the Letter of Intent then formalized in the Purchase and Sale Agreement.  These issues fall into the categories listed below. We have extensive case studies on each of these variables that we can share with our new clients, as no two transactions are ever the same. Contact us today to get the answers to these common, but critical, questions:

  • What is the Multiple and Why?
  • What is an appropriate Down Payment? Depends on the Structure of the Deal.
  • Should the Purchase Price be Fixed or Adjustable?
  • When should the Seller’s Note Start? What about accrued interest?
  • What is a reasonable Term and Interest Rate for the Seller Note?
  • What is the Seller’s Role & Compensation after the Sale?
    • How long will the Seller Participate  after the transaction, how long & in what capacity, who decides when it is time to exit
    • Should the Seller Participate in the growth of their book while employed full-time, if so how does that affect their compensation and/or buy-out.
  • What will the Seller’s title be? Will compensation be tied to performance?
  • Employment/Contractor Agreement, which is better and why?
  • Non-Competes, how long, how far, and how strict, what’s legal?
  • Allocation of Purchase Price, a give and take depending on other variables of the transaction, example, higher multiple a better tax implication for the buyer then the seller.
  • Liabilities Assumed, what happens to liabilities that the Buyer doesn’t want to assume them?

The Letter of Intent issues in a Merger differ from CPA practice sales in the following ways:

  • How do you value each firm, the same or with different multiples?
  • How will Partners be Compensated, same as before or equal now?
  • How will Profits be Shared?
  • Who will be Managing Partner?
  • What will be the Firm Name?
  • How each Partner’s Book will be handled, or should the firm concept be used?
  • What will be the required Billable vs. Non-Billable Hours per Partner?
  • Will Partners’ Compensation also be tied to their Realization?
  • What are the Partner Responsibilities?
  • What Outside Commitments will be permitted?
  • Expulsion, Death, Disability and Retirement of Partners; What will the  Price and Terms be in each scenario?

Economies of Scale – Fall Right to the Bottom Line!!

The money to finance a merger or the purchase of a CPA firm must come from one of three places in order to be economically viable; 1) economies of scale savings, 2) a partner retiring, and/or 3) the growth that will result from the transaction. Economies of scale can be a large contributing factor in this equation. Economies of scale are dollar savings realized when two businesses are combined. These savings arise by 1) the elimination of duplicate expenses, and 2) the spreading of fixed costs over a larger revenue base.

These savings are often large enough to cover the debt-service required by either the Seller or a lending institution.  Expenses with the largest savings include rent, utilities, advertising, insurance, salaries, and software subscriptions.

Due Diligence – Don’t look back and say “I Should’ve Known…”

Due diligence is a vital step in the transaction process whether merging or buying accounting practices.  In addition to verifying income and expenses, every service, client (and their files), employee, and tax return must be quantified, analyzed and verified. As a seller, the best advice here is to perform a “mock” due diligence analysis before proceeding with any buyers. Skeletons need to be flushed out by the seller, not the buyer.  A complete list for both small and large firms can be found in our book The Complete Guide to Mergers & Acquisitions to CPA Firms” or by calling for “Live Advice/Consultation”. (links to both)

Selling

Buying

CPA Mergers

✓ Less Expensive
✓ Tax Free
✓ Long-Term Exit Strategy
✓ Access to New Talent
✓ Misunderstood by most CPAs…
✓ FREE CPA M&A Strategy Session

Practice Management

✓ Increase Your Practice     Productivity
✓ Increase Your Practice Fees
✓ Increase Your Practice Value
✓ Growth Through Asset Leverage
✓ FREE CPA Practice Management Consultation

Exclusive Publications


margers-acquisitions-bookWe are the only consulting firm that has PUBLISHED A BOOK on the subject, “The Complete Guide to Successful Mergers and Acquisitions of CPA Firms”. This Guide documents every step of the process complete with financial analyses, compatibility and risk, legal contracts, and dozens of useful lists, forms and procedures for the merger or sale of CPA firms. But perhaps more valuable, are the many real life examples included that demonstrate how other firms have handled specific negotiations, financing, consulting agreements, and dozens of other issues that necessitate careful consideration and resolution.

Our CPAs, MBAs, and CVAs speak around the country for CPE credits on how to plan an Exit Strategy NOW in order to obtain the highest value for your practice once you are ready to sell. We also hold MERGER SYPOSIUMS which demonstrate how a merger can create many of the opportunities that may not be within reach without partnering with another firm. Whether you are looking to implement a short or long-term exit strategy, buy out a partner, or sell an interest in your firm, or buy a firm – we can help (link to Live Chat).

Click Here To Learn More About Our Book!

Contact Us Today!


United States Headquarters


Address: 3605 North East 32nd Ave,
Suite 107A, Fort Lauderdale,
Florida, 33308

 

USA Phone: 954.536.1269

Fax: 954.603.2002

USA Email: coach@4mergers.com


Canada Headquarters


Address 2818 Main Street, Suite 237,
Vancouver, BC, V5T 0C1

 

CA Phone: 604.260.4824

Fax: 954.603.2002

CA Email: coach@4mergers.ca