The last you want it to reach the exit point of your business journey and not have the right structures in place to successfully exit your accounting firm. That’s why you need to factor in all the elements well in advance.
Developing a succession plan for your accounting firm before time will give you peace of mind and the ability to act decisively when the right opportunity or offer to buy comes along. Here are five things to consider when planning your exit strategy.
- Leave your practice on your terms
Whatever the reason is for you to leave your practice (wanting to start another business, pursue an international opportunity or spend more time with family), your exit must be on your terms.
- Develop a succession plan
If you plan to leave your business to a family member or colleague, you’ll want time to groom him or her for the leadership role. It can take many months to negotiate and finalise the terms of a sale or a merger and having a succession plan already in place can smooth the process.
- Leave no room for uncertainty
If you plan on selling your practice, you don’t want to spend precious time haggling or worried that a more rewarding opportunity might come the prospective buyer’s way. Consider what your target buyer is looking for and eliminate any uncertainties present to encourage a commitment to purchase.
- Be prepared to relinquish control
You’ll know it’s the right time to leave when you can honestly say you’re ready to hand over the reins of your practice. A success plan may involve handing control to family members or colleagues in the lead up to or after your sale. Or, if you’re selling to new owners, it typically means giving up all control upon transfer of ownership, unless otherwise negotiated.
- Solicit professional expertise
Not only are there different ways to exit an accounting practice, there are also financial implications attached to certain decisions. A professional consultant knowledgeable in business exit strategies for accounting firm and succession planning is your best guide to protecting your future once you leave your practice.
To learn more about how to develop the best exit strategy for you and your accounting firm, speak to one of our experienced consultants at DMY & Associates today. It’s never too early (or too late) to begin!