You’re comfortable with the revenue that you generate, so you see no need to change what’s working this close to retirement age. Your firm may not need an online presence. Older firms often have a steady client list and high retention rates, but they’ve also neglected one key factor: going virtual. 2% knew someone who sold off their firm for 80% of revenue (0.8x multiplier).5% knew someone who sold their practice for 130% of revenue (1.3x multiplier).11% knew someone who sold their practice for 110% of revenue (1.1x multiplier).19% knew someone who sold their firm for 120% of revenue (1.2x multiplier).63% knew someone who sold their firm for 100% of their revenue (1x multiplier).When asked on Facebook, one survey found that out of 38 respondents, the following was true: If you’re planning on retiring next month, you haven’t allowed yourself much time to correct internal processes to make the firm attractive to buyers. When Should I Sell My Accounting Practice?Ī lot of firm owners think about selling their firm too late. If you’re wondering “how do I sell my accounting practice and maximize my sale multiple?” you need to know about the common misconceptions when making a sale and a few tips to raise the sale value of your firm. At a 4x multiple, you’ll sell your firm for $400,000.At a 1x multiple, you’ll sell your business for $100,000.Your firm brings in $100,000 in revenue. Strong underlying financials and a robust set of services can help you sell at a higher multiple. You’ve put a lot of time and energy into your firm, so it’s natural to want to maximize your sale multiple. There’s value in the firm that you’ve built and in the client list that you maintain.įor many, it means selling at a low multiple of just 1x. As accountants get closer to retirement age, they start thinking about a continuity plan or selling off their CPA firm.
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