November 15, 2019  
 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Resources for Entrepreneurs

 

How to Sell to a Business

 

Selling an Accounting Business

Most businesses are susceptible to economic conditions and accounting businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.

The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy an accounting business, capital restrictions are holding them back.
(article continues below)

Market timing is a constantly moving target. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a accounting business sale. You just need to know your buyers and structure the deal accordingly.

Adjusting Expectations

Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your accounting business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.

Finding Prospects

Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.

Valuation Methods

Professional appraisers can use three methods to determine the value ofan accounting business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your accounting business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

More Exit Planning Articles

Given your interest in exit planning and in accounting businesses, you might find these additional resources to be of interest.

Family Business Exit Plans

Marketing an Accounting Business

Pre-Exit Employee Incentive Programs


Conversation Board

What challenges have you experienced in selling an accounting business or are you just getting started? If you have questions or advice to share, we'd love to hear from you!


Questions, Comments, Tips, and Advice  Code Image - Please contact webmaster if you have problems seeing this image code
Problem Viewing Image
Load New Code

Hoping to Open an Accounting Business?

If starting an accounting business is on your agenda, these guides will help you get started:

Starting an Accounting Business

Do You Market Products or Services to Accounting Businesses?

If you want information on how to sell to accounting businesses, there's more applicable information for you elsewhere on our site. These helpful guides are more appropriate for you:

Selling to Accounting Businesses

Mailing Lists for Accounting Businesses

More Business Transfer Information

If you are looking for exit plan advice for a different kind of business, please browse our alphabetical directory of exit planning guides below.

Browse more niche exit planning guides:

 

 

 

 

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary