What is apparent is having spoken to a number of accounting and tax brokers across the United States is that competition amongst brokers is fierce, particularly in densely populated urban areas such as New York.
Nevertheless this is good news for practitioners looking to sell, with demand exceeding supply, CPA's that possess profitable practices should be in a strong position to not only to find a suitable buyer, but to also negotiate the broker's percentage fee.
CPA's are more aware than ever of the importance of securing the 'right' buyer for their practice, as well as securing terms that ensure risk is minimized. It's no longer all about the final sales price, and most practitioners are well aware of this.
Practitioners looking to sell should start the information gathering process as soon as practically possible. Speak to the leading brokers and get a feel for the market. Check sites such as the Accounting Practice Exchange, who have a dedicated page that focuses on accounting practices for sale in New York.
Also ensure you regularly visit the same site's 'Wanted for Purchase/Merger' section which displays the latest classified wanted advertisements from CPA's looking to acquisition or merger opportunities in New York.
Finally, the New York Society CPA website offers a classified ads section. Opportunities are also regularly posted here, and it still represents a useful resource when attempting to find accounting practices for sale in New York.
The online marketplace for accounting practice sales.
Tuesday 28 August 2012
Accounting Practice Sales
There is some debate as to the size of the accounting practice sales market in the United States. Research recently undertaken by the Accounting Practice Exchange estimates that at any one time approximately 500 accounting, CPA and tax practices are on the market with brokers at any one time.
However, whilst it is relatively straight forward determining the 'brokered' market, some considerable debate exists as to the percentage share of the brokered to total market.
The Accounting Practice Exchange conservatively estimate that the total accounting practice sales market can be split 50% brokered and 50% 'For Sale by Owner'. However, having spoken to a number of brokers, most of whom have served the accounting practice sales market exclusively for a number of years, estimates of the for sale by owner market vary wildly from 50% to 90% of the market!
What is clear, is that a large number of accounting and tax practices are sold without ever going to the open market. Estimating the size of the 'unknown' is therefore a difficult task.
However, whilst it is relatively straight forward determining the 'brokered' market, some considerable debate exists as to the percentage share of the brokered to total market.
The Accounting Practice Exchange conservatively estimate that the total accounting practice sales market can be split 50% brokered and 50% 'For Sale by Owner'. However, having spoken to a number of brokers, most of whom have served the accounting practice sales market exclusively for a number of years, estimates of the for sale by owner market vary wildly from 50% to 90% of the market!
What is clear, is that a large number of accounting and tax practices are sold without ever going to the open market. Estimating the size of the 'unknown' is therefore a difficult task.
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