Webcast prepares owners to sell firms at best value

Written on Jan 09, 2020

By Abigail Draper, OSCPA communication & engagement manager


When it comes to increasing the valuation of your firm, “the treadmill is always running,” said Dan McMahon, CPA, managing partner at Integrated Growth Advisors. If you want your practice to be valuable, he said, this goal must always be top-of-mind.

OSCPA’s Preparing Your Firm For Sale webcast will take place on Jan. 16 and will cover valuation from the seller’s and buyer’s perspectives, five phases of transitioning a firm and actionable strategies to deploy immediately to increase the valuation of a firm in the next 90 days.

These sessions will be helpful for those looking to transition their firm to the next generation as well, which McMahon said is the “best-case scenario.”

He said the first step of increasing value is “beginning to look at your firm as more than just a practice, but as a business with interlocking parts that drive valuation.”

He said it’s easy for CPAs to get “tunnel vision,” especially during tax season, but it’s important to always pay attention to all aspects of your firm to ensure a strategic focus on the bigger picture: driving or sustaining value.

In addition to covering how to increase firm valuation, Steve Weldon, partner at Accounting Practice Sales will lead a session about the buyer’s perspective of a firm sale.

Sustainable and transferable revenue is one key to effectuating a higher valuation.

“Is the accountant very transactional or do the clients of the CPA firm really see what the CPA brings to the table?” McMahon said. “How loyal are those clients to that firm? These are some aspects that are going to help buyers judge whether the business asset – the CPA firm or the practice that they're trying to sell – is valuable.”

Don’t know if it’s time to sell or transition your firm? McMahon said CPAs looking to try something else with their careers or those nearing retirement ideally need to think about transitioning three to five years in advance. Undertaking an objective assessment of your firm within one year of a planned sale can also make a difference.

"The big ‘when’ is one to three years, but best-case scenario is three to five years. So, if you're 60 and you expect to sell your firm at 65, you should start right now.”

McMahon founded Integrated Growth Advisors with the goal of helping CPAs overcome transition and business growth-related issues. He is excited to share what he’s learned during his 12 years of experience with webcast attendees to help them get the best value out of their firm sale or transition.

Learn more

Preparing Your Firm For Sale

Jan. 16 | Webcast

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