Finding the Right Accountancy Practice Broker
View current Morgan Cox Accountancy practices for sale
Selling an accountancy practice or buying into a new one is one of the biggest commitments anyone will ever make, and it is therefore critical to get the decision right. Most people who venture into the accountancy industry by buying into a business have neither the time nor the expertise to complete the process themselves, and use the services of an accountancy practice broker to assist them with the search for a business opportunity and the conclusion of the deal. There are a large number of brokers out there however including us, so how does a prospective buyer or seller decide which of the many brokers is the best option for them and their business?
Location, Location, Location
As one of the larger accountancy broker firms we have interests and consultants across the UK and are equally comfortable with deals in Belfast, Glasgow or Southampton. Most people who venture into the accountancy industry by buying into a business have neither the time nor the expertise to complete the process themselves, and use the services of an accountancy practice broker such as us to assist them with the search for a business opportunity and the conclusion of the deal. There are a large number of brokers out there however, so how does a prospective buyer or seller decide which of the many brokers is the best option for them and their business?
Market Sector
Accounting businesses vary from single room operations with one member of staff completing tax returns to much larger firms who audit and prepare accounts for multinational corporations. A seller should take some time to think about what sort of business he has, and what brokers appear to have success selling similar sorts of companies. From a buyer’s perspective, we can deal with anything from a small one director practice to a large multi-national firm.
Recommendation
One of the most tried and tested ways of finding any trades person or company is to ask friends and acquaintances for recommendations. Friends will often give very honest feedback about their experiences with individuals and brokering firms. For a very niche business in a specific geographic area it may be difficult to get feedback from people who have used the firm previously. Read our customer testimonials to hear from similar individuals who we have worked with.
Relationships
The person who you will be dealing with in the brokers firm is of critical importance to the success of the deal. Before signing up to any broker, arrange a meeting with them to see if a relationship can be built with them. Personality conflicts and clashes don’t necessarily mean that there is something wrong with the broker, but it is very difficult to manage the sales process if the two parties involved do not get along with one another. A good broker firm will give each client one fixed point of contact to deal with so that the account manager takes complete control of the deal. The criticism of many brokers is that clients never speak to the same person twice, so having a fixed point of contact is a huge advantage. Working with us you will personally have a single point of contact with that agents mobile number. If you have any questions or queries we are immediately on hand to help.
Fees
The decision about a broker should not be based purely on price as the old adage of “you get what you pay for” often rings true. Although all brokers will compete on price, those who are undercutting the opposition by significant amounts may be cutting corners when it comes to marketing, advertising or professional standards. Brokers should be upfront about their charging structure and should be open and honest with potential clients when it comes to discussing what their fee may be for helping with the negotiation and sales. We have a very simple fee structure which is based around results. If we don't sell your practice we don't get paid. Beware of brokers who want to charge you registration/administration/marketing and other such fees. Recently we spoke with a vendor who had been asked to pay £5000 up front to sign on with a (undisclosed) broker. Speak to us first. We can even arrange for the buyer to pay all our fees so it won't cost you anything at all.
Confidentiality
In the accountancy industry, word that a business owner is thinking of selling up and moving on gets around quickly, and many owners worry that putting their business on the market will adversely affect the morale of staff and may encourage clients to start looking elsewhere. Rumours can greatly damage the reputation of a business and it is therefore essential that proper steps are taken to protect the confidentiality of both the seller and the buyer. A good broker will ask all parties involved to sign a confidentiality agreement before starting the process. This is a legally binding document which prevents either party from disclosing information to anyone else.This type of agreement is standard practice for us. No one gets near your practice without having signed an NDA and confidentially document with us.
Valuation
The sum which the business is valued at will determine the starting point for negotiations about price when a buyer is found. We have substantial experience in valuing many types of business within the accountancy industry and are confident when talking about the process they follow for arriving at the valuation figure. Any competitor who arrives at a valuation which appears far higher or far lower than other firms may not be the ideal person to represent the practice for sale. Do not be tempted to go with anyone who has valued the practice at a far higher rate than everyone else, as the practice is unlikely to sell quickly if it is priced too high. Also have a look to see how many practices are currently for sale. If there is a long list of 30+ practices advertised then something is wrong and steer clear of that broker. These practices have probably been valued too highly or there is a bottleneck with the brokers services. We run every new practice against our database of registered buyers. Many deals are done even before hitting our website. Nicely efficient with minimal fuss.
Marketing
We have a variety of marketing tools at our disposal which include a database of prospects who can be contacted immediately, advertising online and in the trade press, and even networking to spread the news about opportunities. We are happy discuss with confidence the various opportunities we have in the accountancy industry and ask pertinent questions to try to help identify exactly what it is that the buyer is looking for.The other main advantage of using us is our search engine presence such as google. Type is "accountancy practice for sale, accountancy practices for sale or accountancy practice valuation" and you will see that we are right there at the very top. Your buyer is likely to search for these terms. That's why we have a large database of registered buyers. Our competitors can't top this!
Case Studies
We will happily share success stories with potential buyers and sellers, either on our website or through a glossy brochure which is given out at the initial meeting. It is important for all parties to look through the case studies and try to identify whether there is one which is similar to the business being sold.
So in summary this is why you should use us: We are:
