What should I review in due diligence?
There are many aspects that due diligence should focus on including but not limited to billings versus collections, age analysis of receivables, and seasonal cash flow. There are four key considerations when reviewing these and each is instrumental to the success of the deal. Cash flow and profitability. These figure heavily into the twelve key contributors […]
How do I maximize the retention of clients and staff?
Continuity equals retention. Clients typically have many choices and choose a firm based on varying criteria including comfort, trust, fees, location, niche expertise and service philosophy. This question must be answered, “Will the clients of the seller see you more as an addition to the equation or will they see a huge change?” Change is not comfortable for […]
How do I choose the right practice to buy?
There are several things you must consider when choosing the right firm to acquire: Expertise. Does your firm have the ability and appropriate licenses to assume the work being done by the seller? Excess capacity. Does your firm have the excess capacity to replace the time and roles being performed by the seller and whatever staff may […]
How do I value an accounting firm?
There is an expression in the merger and acquisition industry, “Beauty is in the eye of the beholder, and so is value.” From that expression, we will build a foundation for value determination. Every firm you consider as an acquisition candidate will value out differently. If you begin to value out your acquisition target based […]