Gearing up for a Successor

Overview

Managing and growing a successful practice requires that you have good people providing exceptional service at the right price. That was once done by the hour, but in today’s world, when tech can perform work faster than people, the billable hour no longer works. Your price should reflect the value you provide, improve the service provided to customers, and create a better work environment for your team. Yes, the right price can do all that! In this session, we’ll explore how a radical approach to your pricing can lead to a stronger firm with greater profits. This course is from The Elevate Forward series, which continues the conversations started at the annual Elevate: Women’s Leadership Forum.

Highlights

• Financials Matter: Ensure detailed, accurate financial statements and break down fees by service line
• Valuation Trends: Explore current market valuations for accounting and tax firms
• Know Your SDE: Learn how to calculate Seller Discretionary Earnings to assess firm value
• Value Drivers: Understand how location, remote client mix, client interaction, and services impact valuation
• Valuation Multiples: Get insights into typical multiples based on gross revenue and SDE
• Financing the Sale: Discover how seller financing, revenue guarantees, and outside lending affect deals
• What Not to Do: Avoid common mistakes that can derail a sale
• Private Equity Insights: Hear what's happening in the PE space and their growing interest in accounting firms

Prerequisites

None.

Objectives

• Understand key factors that influence the valuation of an accounting or tax firm, including financial documentation, service lines, and market trends
• Learn how to prepare your firm for a successful sale or succession, including calculating Seller Discretionary Earnings (SDE) and avoiding common pitfalls
• Explore financing and buyer options, such as seller financing, revenue guarantees, and private equity interest in the accounting industry

Preparation

None.

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will NOT be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by CalCPA. The course expires one year from the purchase date. Format = Online Self-Study.