1. The key to achieving with the non-competition agreement is to prevent the seller from serving customers sold to practice. The non-compete agreement should refer to a complete list of all customers sold and all customers held by the seller (if any). The seller should not be able to serve or offer company customers regardless of the distance. Due Diligence and Non-Boutique: Please indicate the timing of the seller`s and buyer`s availability of the documents for full verification, z.B. «The buyer agrees to complete due diligence until a specific date» and/or «The seller undertakes to cooperate fully in providing the requested information.» It is also a good idea to agree that the seller does not «shop the deal». Adding a clause such as «the seller undertakes to cooperate exclusively with the buyer and not to make other offers before the agreed date» is a good practice to cover this risk. Conversely, conditional price agreements are often much more difficult to document in an agreement, not least because they refer to the way and when the final price is calculated. Everything should be formulated in depth. For example, how is work-in-process treated? What about the new customers brought in by the buyer? 1. Situation – In general, there are more buyers in large urban areas than in rural areas.

The number of potential buyers for a practice is a key concept that must be top-of-mind when considering market value. Often, contracts can be long and repetitive. This can be extremely problematic if it leads the parties to lose sight of what is really important. A successful sales contract is written so that everyone understands the terms of the contract and can move forward in a timely and safe manner. If you missed our last podcast with Chris Sloan on contracts, this is a great resource to get you out of it. Chris has a very rare and refreshing approach to creating contracts. 3. Marketing – Professionally marketed practices tend to sell for higher multiples with cleaner conditions.

Having an experienced intermediary maximizes the number of qualified buyers interested; and allows owners to focus on the practice while it is being marketed. In addition, growth trends are important to maintain this evolution and the time and energy needs of selling a business should be minimized. A good intermediary also creates added value for the buyer by sharing proven transition methods. 2. Size – There is a «soft spot» for businesses. In general, there are more buyers for accounting companies that can be purchased and operated by a single owner. Firms under $1,500,000 generally fall into this category. CPA practice notices vary greatly. Ultimately, the price depends on what a buyer is willing to pay, how a buyer is willing to pay, and what a seller accepts. Therefore, the evaluation of each CPA company is subjective.

The indication of the price in a contract is relatively simple, unless there are conservation quotas. If there is one section of the agreement to be particularly clear in advance, it is this one. I hope that the seller`s intentions will be revealed and transparent before he reaches the bidding phase. For buyers, this section is usually very sensitive when changes are proposed by the seller. It also helps to know what banking requirements are for the non-compete sector. We have seen separate competition bans, but for the sale of accounting practices, the non-competition agreement can be quite short and concise as long as the primary points below 4 are well documented: 5) Timing: the timing is increasingly important, because the percentage of tax reporting revenue increases within a company.