Selling an accounting practice checklist

Contents

Foreword Preliminary steps before listing for sale Prepare practice profile for potential buyers Prepare a Deed of Confidentiality and Non-Disclosure Determine the selling price for your practice Listing the sale of your practice Timing Advertising Respond to enquiries Documenting the negotiated sale Heads of Agreement Contract issues Formal contract process Handover Introduction to clients Familiarisation with office procedures and systems Employee records Notifications to relevant/interested parties Appendix 1: Sample questions for a ‘seller’ to ask of prospective buyer(s) Appendix 2: To sell a parcel of fees under vendor terms (no initial outlay of capital) Value of the parcel Method of payment Advantages Disadvantages Appendix 3: To sell equity in the firm to an employee/admit an employee as a partner Objective Background Firm valuation model Leveraging the firm’s equity via debt financing Vendor financing Appendix 4: Options to access the CGT small business concessions The 15-Year Exemption The 50% Active Asset Reduction The Retirement Exemption The Rollover Concession Method Statement

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1

Foreword

The purpose of this checklist is to outline how a principal in public practice can effect an orderly sale of their accountancy practice or parcel of fees. In practical terms you can either: a) list your practice for sale with a specialised business broker who may charge a commission of up to approximately 7% of your gross annual fees or conduct your own advertising program and sell your practice privately.

Decision made to sell the practice or a parcel of fees

List for sale with specialist business broker

Conduct own selling program

b)

Note
This document is provided as a guide to some of the