We are constantly being asked ‘how much is my/our practice worth?’ Of course, the answer is ‘how much a buyer is prepared to pay’. Yet, this is a cop out answer!
Can you all remember the different ways we were taught to value businesses? Net Assets, Goodwill as a function of so many years profit etc. The list goes on and on.
Well at long last the Commonwealth Games have finished and we can all get back to some sort of normality and get on with the new financial year, or over it.
One of the things that has baffled many of us over the years, is the ‘x’ factor when it comes to success in business.
I know you will and certainly we have had the chance to get to know a vast number of business owners. Some good, some bad, some succeeded, some didn’t.
As we are approaching the festive season, we are coming across more Practitioners/Partners looking to sell or at least wanting to start an exit strategy, which should have been in place many years ago.
Practitioners who haven’t given a lot of thought to an exit strategy are now realising decision time is rapidly coming closer.
Run your mind around the following concentrations of risk:
Good afternoon Practitioners,
In retirement one has plenty of time to think about life in general (particularly when I am not playing golf!!) and one of the constants that I ponder is why we, as a profession, seem so reluctant to let the reins go??
I have spoken to hundreds of practitioners, from one man bands to partners in multinational practices, and the constant that I came across was this reluctance to go!!
Now this may appear to be an obvious question but believe us, a minority of Practitioners need to ask themselves this question. To reiterate, if you want to die still going to work each and every day then don’t ask why!!
Should you just ease back and let the value in your practice dissipate? While trying to carry on and and remain abreast of all the legislative and other changes that occur?
Are you an Accountant looking at furthering your career? Are you showing or experiencing any signs below?
Exit strategies are a sensitive subject when it comes to an Accounting Practice owner looking to exit the practice.
Public Practice in New Zealand is a niche market with an extensive number of chartered firms nationwide, accompanied by Tax agents and independent Accountants; exit strategy has always been a sensitive subject and is a growing issue in NZ. Exit strategy is not one to be discussed when starting a business, however at some stage a business owner will exit.