|
FROM: MAY-JUN 2008 ISSUE | BY MARK WARDELL
I’m the managing partner of my accounting firm, and about to be “bought out” by one of my senior accountants. Can you suggest some strategies to make this transition as smooth as possible?
I’m glad you’ve realized you need to be prepared for the many complications that can and often do arise when a business changes hands.
I’ve walked many business owners through the process you are embarking on; what follows is a breakdown of several of the most significant factors you should address before you sell. Consider these, and you’ll be well on your way toward smooth sailing.
First you need to understand that if your firm is set up to run independently from you as the managing partner, it will not only have a higher market value, but it will be a much more desirable purchase for your successor. If you are 100 per cent satisfied with the way your firm is operating right now, then you can skip a couple of paragraphs. However, if you know that your firm, like most, isn’t currently operating as systematically (and thus, lucratively) as it could be, I would strongly advise you to first make some changes to get it in top form before you sell.
Key Components
According to accounting systems management expert Ken Richardson, EPR, CGA, “The most successful transitions come about as a result of a practitioner having developed a practice that integrates a well thought out and documented strategic plan, a documented marketing plan, well trained staff, procedure manuals, policy manuals, standardized software, forms, letters, checklists, clearly defined client and engagement acceptance policies, a client contact management system, time tracking, and a billing system that provides information in the form of key performance indicators.”
Richardson describes many of the fundamentals of a systematic accounting firm. Before you sell, take the time to break your workplace operations down into logical components, and identify any weak areas you can address to help your business run more effectively. Likely, you will need to make some changes to get your firm operating more efficiently. It may not be easy, but it will definitely be worth it.
Once you feel confident about the foundation of your business, you will need to begin the process of training your buyer. This means taking the time to walk your successor through all the steps involved in running your firm. In my experience the more systematic your business is, the less complicated this process will be. This training process will also help ensure your successor will employ the same level of services expected by your clients.
One last note, and not least important, is that your successor must be trained to continue offering clients the same “culture” of services. Don’t forget, the core values and beliefs that attracted your clients in the first place are a big part of why they will continue doing business with the firm when you are gone, whether you are a friendly, casual firm or an austere corporate firm.
[ TOP ] |