1. Q. Is a down payment required?
A.. The seller would require a down payment from 0-20%, depending on circumstances. If the seller finances the purchases, he or she would generally require a down payment to insure the buyer’s commitment and give him or her more assurance of being paid
2. Q. What are the major risks associated with purchasing a practice?
A. Employees: Retaining the employees of the practice is very important to the success of the buyer. It is also critical that the employees not enter into competition with the buyer after the purchase. Carefully assess the possibility of their leaving the practice and taking clients with them.
Large Clients: Our model for transition is based on a belief that if a buyer does his job in selling himself to the clients he should be able to retain most of the clients. A special risk, however, exists if one client represents an abnormally large share of the practice revenues. We recommend looking carefully at the 10 largest revenue producing clients from the prior year.
Buyer Apathy: Immediately after closing the purchase of a practice, a buyer should market himself to all the clients as if they were new prospective clients. If the buyer does his job, he should retain the vast majority of the clients. Failure to do so can risk loss of clients.
3. Q. Who bears the risk of client retention?
A. Sellers represented by Just for Accountants generally will not bear the risk of client retention. At Just for Accountants, we believe that buyers have control over client satisfaction and that practices should not be sold under any type of “seller guarantee” or pricing formula that is based on the buyer’s success unless that is the sellers wish.
4. Q. How long does it take to obtain financing?
A. We have a mixture of cash buyers and part financed buyers. We have relationships with experienced lenders and can walk you through this process. Our lenders can, in many situations, give verbal approval within 15 days of making applications and can close within one month.
5. Q. Why use Accounting Practice Sales?
A. We have highly qualified pre-registered buyers. We sell the many of our listings for all cash at close. We market your practice nationally and expose it to every possible buyer. The best chance of your getting a qualified buyer who will meet your price and terms will be obtained by bringing many buyers to the table rather than just one or two. We assist in every step of the way from helping to set an asking price for your practice, negotiate with buyers and obtaining financing.
6. Q. How did you become an accountancy broker?
A. We believe it began with the fact that our founders are accountants who owned practices themselves for years and understand the business from the inside. We have also extensive knowledge of buying and selling practices as well as growing them once they were bought and the risks associated with the process of change of ownership. We also have extensive Knowledge of Their model for practice sales is that the seller should not take the risk of client transition and should seek a deal that is all cash or cash equivalent
7. Q. I plan to sell on my own. What are practices selling for in my area?
A. Do you want to know what you could sell your practice for or what we can sell your practice for? We believe you will likely net more by letting us do the work. It has been demonstrated that a competitive bidding environment almost always increases prices
8. Q. How do you find buyers? Where do you market my practice?
A. JFA goes direct to the market we specifically market your practice by direct mail and telemarketing. The key to getting the best price and terms is to bring as many buyers as possible to the table.
9. Q. How do you plan to market my practice while maintaining confidentiality?
A. JFA is very conscious of your needs with regard to confidentiality. In general we market your practice in a way that maintains your confidentially and guards your identity until a buyer is found who is both qualified to purchase your practice and has a desire to do so. We will consult with you regarding special needs in the area of confidentiality and structure a program that meets these needs.
10. Q. How can I make sure that my clients and employees will be taken care of?
A. Finding the right buyer is not just a matter of finding someone willing to meet your price and terms. We understand the need for finding buyers who have sufficient experience and skill to treat your clients and employees as you would.
11. Q. How long does it typically take to find a buyer and close?
A. We think in terms of two months although it varies depending on time of year. Our goal is to introduce you to several qualified buyers within a couple of weeks of beginning the process. In many cases, because we already have many buyers registered, we can introduce you immediately to persons interested in your practice.
12. Q. Will the buyer take over my existing lease space or buy my building?
A. The vast majority of our practices are sold to individuals that retain the existing location. In most cases, the buyer of your practice will want to retain your space either through lease or purchase. If this is a requirement either because you own the building or have a long term lease, we can qualify buyers with regard to their ability and willingness to keep the same space.