november2021 - 8

FEATURE
How to Find
the Right
Buyer for an
Accounting
Firm
By Joe Carufe
AS YOUR TAX and accounting firm's leader,
you know what's best for your business,
but when it comes time to sell your firm
to another practice, how do you find the
firm that makes the most sense?
Selling your firm isn't an easy
process. You put in dedicated time,
money, and emotion into building
your business, so selling it can be a
difficult decision. That's why you need
to be confident with your buyer. You
want your hard work, staff, and clients
to be in good hands.
Over my years in the accounting
profession, I've spoken with owners
on both sides - key stakeholders going
through the sale of their firm and
those preparing to acquire another
firm. From this experience, here are
the four core tenants to explore to
ensure you find the right buyers.
1
FIND THE RIGHT
CULTURE FIT
It's important that you find
a firm that shares your own
values, so spend some time understanding
the other firm's culture. Are
they going to mix well with yours, or
will it be like oil and water?
If it's the latter, the acquisition
process may be difficult from the
start. Your team members need to be
excited about their future, so finding
a firm that shares the same values,
mission, and goals is critical in ensuring
a smooth transition for both sides.
2
UNDERSTAND
WHERE YOUR TEAM
FITS AND SAFEGUARD
THE TEAM
I've seen and heard more than a
few practices sell into larger firms,
and while the ownership team was
able to successfully exit, it was done
with remorse for what happened
to the remaining members of the
team.
Originally, the ownership team
had hopes and dreams for their
team members, but ultimately, the
buying firm didn't share the same
feelings - and you can't blame them.
After all, the buying firm won't
know your team members' dreams
and aspirations if you don't share
these with the buying firm.
On the other hand, if you are
with a firm acquiring another firm,
make sure you understand what
your new team members are hoping
for, and make sure that aligns with
your future. If not, you risk attrition.
Whether you're the buyer or
8 NOVEMBER 2021 ■ www.CPAPracticeAdvisor.com
seller, find out what value the
acquisition will bring to your team
members. You'll get peace of mind
heading into the acquisition, and
secure your team's enthusiasm
and engagement around the whole
process.
Next, understand where your
people fit - not just today, but
deep into the future. Do you see
upward mobility as a result of the
acquisition, or are there going to be
certain divisions that will no longer
be necessary? For example, if the
buying firm already has a director of
operations, where will your director
of operations be deployed? What
does the future look like for each
of your team members?
Doing this research takes
work, but it all goes back to doing
right by your people, and from my
experience, buying companies are
looking for people to hire because
the market
is challenging right
now. Hiring and training is difficult,
which means that strong teams who
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november2021

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