There are three common methods of expanding your practice.
You can acquire one client at a time, develop a marketable niche or merge/acquire another practice.
Growing your practice one client at a time is slow and often expensive. Developing a marketable niche is a very good business practice. But this takes time, significant effort and, if you are starting a new niche, it usually requires a significant, upfront financial commitment without necessarily receiving a predictable ROI. If structured properly, it is the most efficient and effective manner to acquire new clients and opportunity.
Acquiring a practice is often the quickest and most effective method of growing your practice and should be a part of your strategic plan.
As you review this section, examine your goals for wanting to acquire a firm:
- Do you want to create synergies or add similarities of service or clients?
- Are you looking for a satellite office? If so, why and where?
- If growth is a goal, are you willing to consider all forms of growth – such as a merger – or just growth through acquisition? If you would only consider one of the two please examine the benefits of both before ruling one out.
- Are you informed and aware of the current market for offers and terms?
- Can you effectively communicate to a potential acquisition candidate your value as the successor firm?
- Is your offer (not just the financial portion) fair, equitable and one that will help both parties achieve their goals? Or is it an offer that screams, “I am in this just for me!”?
- What is your acquisition mission statement? Can you communicate it effectively enough to generate interest from a firm seeking to be acquired?
- Do you have the capacity to take on additional work?
When you engage Whitman Transition Advisors to identify and locate a firm for you to purchase we will:
- Extensively interview you and identify your requirements
- Regularly communicate our progress with you.
- Bring you qualified acquisition candidates.
- Be your liaison through the acquisition process.
- Work through the due diligence with you.
- Work with legal counsel to prepare the Purchase & Sale Agreement, necessary covenants and declarations, bill of sale, non-competes agreements and where required employment contracts.
- Assist in the development of post sale company integration.
Acquiring a firm requires skill sets and expertise in many different areas to ensure that at the end of the day you get what you want.
If your objective is to acquire new niche markets, expand exisiting practice lines or capitalize on the synergies through an acquisition Whitman Transition Advisors LLC can assist you in accomplishing your objective.
