7 Tips for Acquiring an Accountancy Practice
By Abbott & Crowe
Accountancy practices are hot property. To get ahead of the game follow our seven tips for acquiring an accountancy practice.
Accountancy practices are in demand. It’s a sellers’ market and buyers can’t just expect to turn up and take what they want when they want. There are a large number of smaller firms operating in the UK and many of them are trying to grow through the acquisition route and there is an increasing demand for any type of practice.
Those that do come to the market receive a lot of interest from potential buyers.
Mid-sized practices don’t come to the market very often, and when they do, they go for very good prices.
If you are looking to buy, consider the following seven tips.
1. Have a defined strategy including possible locations, type of fees and maximum expenditure for this acquisition.
2. Work out what you may be prepared to offer both based on a GRF multiple and also other incentives. Be creative.
3. Ask yourself what your unique buying point is? Vendors will currently expect to receive more than one offer. Why is your offer better?
4. Register with the best accountancy practice brokers – Abbott & Crowe are specialists in this field. Consider proactive searching of suitable practices by using our in house search team service.
5. Use social media. Like or follow, social media and search out suitable vendors. What are they like? How can you improve?
6. Act quickly & be flexible.
7. Be nice. Business doesn’t need to be stressful. When a vendor was asked why he chose one offer over another his response was “I want to do business with nice people. First impressions count and he was very hospitable when we met”
Published September 2014