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Thinking about your New Year’s exit strategy?

18th Jan 2013
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Like individuals, the beginning of the year can often signal a period of great change for mid-sized accounting firms. Many partners may be considering the firm’s exit strategy and looking at ways to make it as attractive as possible to potential buyers. For those looking to sell, there are a number of ways to ensure that the business is a desirable asset to a purchaser’s portfolio, and most importantly, it is competitively valued.

There are particular key performance indicators (KPIs) that firms will be measured on to assess the suitability of M&A activity. These include financial condition, organisational competencies, structure and processes. This information is vital for any prospective parties interested in the business to easily assess the viability and value of the firm.

For many mid-market accounting firms however, providing this type of data can become a real challenge as a result of home grown or multiple, disparate business systems, that create information silos. This means that sharing accurate, timely and relevant information against specific KPIs such as staff utilisation figures, project profitability by sector, Day Sales Outstanding among others to prospective purchases, can be limited.

As part of any exit strategy, firms should consider implementing a purpose-built enterprise resource planning system that is not only designed for the needs of accounting firms, but also delivers data against crucial KPIs in a format that is easily recognised by the acquiring firm. A real selling point for any accounting business.

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