FAQ
The sale or purchase price of a firm will be based on a multiple of the practice’s revenue.
However, in order to determine the appropriate multiple, we do a full valuation of the
selling practice which includes the quality and type of clients, services offered, quality of
staff, and firm financials.
Every deal is different. We structure the entire deal around the risk, with both parties
sharing in the risks as well as the rewards. For example, if a seller were to collect 100%
of the sale price up front, there is no incentive for that seller to assist in transitioning the
clients. This would put all the risk on the buyer, which typically does not lead to a
successful long-term transaction. The same can be said for a deal structured with earn-
outs, where the buyer pays the sellers over the years as money is collected. Ultimately,
we look to balance the variables to ensure a fair and successful deal.
When bringing two firms together, it is critical to analyze and match buyers and sellers
very carefully. We have developed an approach similar to online dating, where we can
analyze specific criteria each firm provides us in order to evaluate the compatibility of
firms such as corporate culture, financials, human resources, partner personalities and
philosophies, and goals.
Hiring the right company to assist you in selling your practice can truly be life changing.
While most “brokers” will tell you, they will get you the biggest payout possible for your
firm, the truth is, buyers are more sophisticated than ever. Among other thing, buyers
want to see an in-depth analysis on your practice to have a better understanding of how
compatible the practices are, how skilled your staff is, the depth and breath of services
you offer and how successful you have been at selling those services to your clients. For
these reasons, Strategic Alliance CPA Consultants provides documentation with a
detailed analysis on each of these KPIs, not only reassures potential buyers that your
practice is a good fit to integrate into their firm but allowing you to push the limits on the
valuation of your practice.
Many acquisitions take place without the assistance of a broker. While some of these
acquisitions are completed without issue, many find that they overlooked some key
components to ensuring a successful integration. While many business brokers can
assist you in finding a tax of CPA practice for sale, Strategic Alliance CPA Consultants,
who works exclusively with tax, accounting, and CPA firms can not only find practices for
sale but can provide you with a peace of mind that every aspect of the practice has been analyzed and documented. In addition, Strategic Alliance handles all of the due
diligence, documentation, and even prepares the legal documents and assists with
financing to ensure a smooth and easy transaction.
