Buying a CPA Practice

Transcript

Andy and Jessica are bringing the experts to show what business sales look like when you are trading accounting and CPA practices. Ray Copell is one of the amazing guests; he has been in Transworld Business Advisors for 25 years. Ray has been a CPA and has participated in CPA sales as well as in legal practices, which have been sold more frequently these days with baby boomers selling their practices, and they are expected to be even more numerous in the next 5 to 10 years; bringing in great opportunities for people in that industry.

A lot of these practices can get 100% financing, which translates into a wonderful opportunity to either grow a practice or, for new professionals, it is a chance for, instead of joining a big firm, buying one. Good deals for good people!

Listing of the week: Linda Broom (Grapevine, Texas) Franchise Massage Therapy Business. Great location, lots of traffic. $500,000 in gross sales. Listing price $175,000. Seller discretionary income between $50,000 and $60,000. Email Linda [email protected] or call 469-525-0681.

Key Takeaways

[3:56] Anteneh Dejene (South Bay, California).
[4:55] Converting at the right time.
[5:40] What are tax practices usually selling for?
[6:15] The transition period.
[7:05] Adjusting the selling price.
[7:15] The market right now.
[8:44] Deal of the week: Michael Shea (Central Florida). CPA business, small practice, Price: $165,000. $25,000 in seller financing over two years at 5.5%.
[14:35] Ray Copell talks about selling professional practices.
[15:41] Why buy a CPA practice.
[16:25] Valuation model for a CPA practice.
[17:56] The value is in the recurrent business clients.
[18:54] Retaining the clients.
[20:04] Different states’ regulations.
[21:08] Retentions affects sales.
[22:17] Business vs. Personal.
[22:45] Selling and merging law firms.
[24:33] Valuation for law firms.
[25:56] Legal considerations with transferring a law firm.
[27:35] Listing of the week: Linda Broom (Grapevine, Texas). Franchise Massage Therapy Business. Great location, lots of traffic. $500,000 in gross sales. Listing price $175,000. Seller discretionary income between $50,000 and $60,000.

Mentioned in This Episode

• United Franchise Group
• Transworld Business Advisors
• Transworld on Linkedin
• Transworld on Facebook
• Call us
• Email us
• Call Anteneh Dejene
• Email Anteneh Dejene
• Call Michael Shea
• Contact Michael Shea
• Tweet Michael Shea
• Call Ray Capel