4) Transition plan: This is one of the most important components of the contract and is often overlooked by lawyers and buyers. If you want the transition to go smoothly, it`s important for buyers and sellers to agree to certain action steps and timelines. Transition plans are much easier to write and execute if the agreement is already concluded, but should still be in writing and, if possible, part of the sales contract. A good lawyer should put you on the right track for an agreement that minimizes the risks to your clients, employees, and confidentiality, while providing a quick and appropriate solution in the unlikely event that a potential buyer violates any of the terms of the agreement. 3. Understand some of the types of clients in the practice, which includes sectors, longevity and complexity of the work. After six months of delay, he finally presented an offer in early December. You are shocked to learn that your “perfect” buyer has just made a lowball offer, both for the price and for the deposit. What further complicates matters is that most of the purchase price depends on customer collections that are paid on earnout basis – a structure you would never accept. By deliberately waiting for December to make his lowball offer, this buyer intends to take advantage of your lack of options and time to get another deal before the upcoming high season.
Their respect for this buyer has been destroyed by his dishonest sleight of hand. You tell that buyer to “take a hike” as you reluctantly prepare for another busy season without a sale. Clearly define the terms of the sales contract sellers usually control the sales contract, so talk to your lawyer, let them know about your plans and ask what value they can add to the process. If you`re considering selling an accounting practice in the next three or five years, you need to take action now. Like everything in work and life, failure to plan successfully usually leads to lackluster results. Ask yourself a few important questions The key to a successful transition is to have the right buyer for the practice to sell. Otherwise, the previous 4 concepts will not really be important. Make sure professional experiences, management styles, and customer service philosophies go well enough together.