2016 is upon us and the new financial year is nearing faster than you thought!!

The market is in full flight with pending sellers ready to look for the right opportunity or purchaser.

There seems to be a growing trend of succession planning, acquisitions of smaller fees and mergers that we have brokered very successfully in the last year.

We have a huge number of smaller practices looking at various options other than the straight sell!, We have a number of Accountants exiting firms due to financial security reasons, succession planning on the rise etc etc

We often get asked some common questions, so I thought we at Accounting Practices would share a few below:

1. How can I get finance to purchase? 
   For bank-financed transactions, the seller can expect to receive 50% to 100% at the closing. Although that is an option, we tend not to encourage vendor finance deals. We have a strong rapport with most of the main stream banks who specialise in this area.
    
2. Is fixed assets included in the sale price?
   It is usually included at fair market value or seperate from the sale price
    
3. What sort of transition period are we looking at?
   It varies. Most sellers provide nearly full-time transition assistance for the first 3-6 months, however a longer period can always be negotiated.
    
4. What are the guarantees that the clients will stay?
   Sometimes there is a one-year guarantee of billings. At the end of one year, any differences are adjusted to the balance owed to the seller.
    
5. How can I determine the value of the firm? 
   Location, profitability, gross fees etc

We have seen some huge growth in the number of practices listed and sold in the last year by our brand- Accounting Practices Limited. We continue to lead the way as a trusted brand when it comes to buy/sell and merge in NZ.

We have a number of listed firms for sale, if you are interested to discuss in confidence, then please contact us for a chat.

If you are looking for FREE market adivce or looking to BUY/SELL/MERGE OR Career path? Then lets chat:

admin@accountingpractices.co.nz 

Have a great year !!!