Before you buy or sell a practice or block of fees, you need the financial facts at your fingertips, writes Nicola Draper.
Whether you are buying or selling an accountancy practice, you need to know all the facts, in particular the financial facts. While ethos, staff, assets, premises and location all play their part in a transaction, without the financial information, most sales will flounder.
Accountants are very adept at managing other people’s financial affairs but you would be surprised how often I come across firms that have neglected their own. Money management is crucial to the success of any sale. Without your own figures at your finger tips, there will be no deal. Buyers need to know exactly what they are buying.
I recently came across one practice that wanted to sell...