The Purchase and Sale of an Accounting Practice

If you are considering buying or selling an accounting practice, this book by CPA Canada will help you navigate through the important phases of the transaction process. Topics include pricing and valuation, structuring the deal and the complete transaction process. This book focuses on small- and medium-sized practices and will serve as a guide, providing useful tips and information.

While undesirable outcomes following an acquisition or merger between firms are not always preventable, there are things that you, as the buyer or seller, can do before, during and after closing to minimize the likelihood that these outcomes will occur, or minimize any potentially negative effects. This publication provides detail on how you can:

• Understand what a properly executed deal process should look like, the phases it should contain, and why they are important for you to consider before pursuing a transaction.
• Understand how value is measured, the key value drivers of the practice you are selling or buying, how to identify the risks being assumed post-closing and how these should influence price and due diligence. It’s important not to blindly rely on rules of thumb when valuing a practice.
• Determine your objectives as well as the financial resources and expertise available to you when the time comes to complete a transaction. The wherewithal of both the buyer and seller, as well as deal dynamics, can influence the pricing, terms and conditions, and structure of a deal.
• As a buyer, be clear on your objectives for an acquisition, having a clear strategy for identifying a target and addressing it, and being prepared to execute a clearly defined integration plan.
• As a seller, understand your options for undertaking a sale process and the right process for your particular practice. These include having a plan in place, retaining the right advisors, knowing how and when to disclose sensitive information about your clients as you progress through a deal, and doing your own due diligence on the buyer. Due diligence is a two-way street.

Following is a brief table of contents:

• Chapter 1 – About This Book
• Chapter 2 – The Transaction Process
• Chapter 3 – Valuation and Pricing
• Chapter 4 – Deal Structure
• Chapter 5 – Purchasing an Accounting Practice
• Chapter 6 – Sale of an Accounting Practice
• Case Studies
• Sample Documents

ISBN: 978-1-5254-0285-2
Publication Date: June 2018