Employee Non-Compete Covenants
For many Purchasers of Accounting and Tax Preparation firms, the employee non-compete agreement is important. It protects them in their purchase - (and it also protects the Seller - since the value of a Practice is based on revenue transferred!)

While most large Accounting and Tax Preparation firms have employees sign non-compete Agreements during the hiring process, we find that small through medium-sized firms do not. And, once an employee has been with your for a time, it can be awkward to ask for such an agreement. If you find that you are in this situation, let us know, and we'll suggest a way that has worked well for others in the same situation.

Raising your Billing Rates and Fees
Since the value of a Practice is, in part, a multiple of Annualized Billings, then the higher the current Billings, the higher the value of the Practice. Our recommendation is if you have not raised your hourly, monthly or yearly rates in the last six to nine months, you should do so. And this is not a negative thing for the Purchaser, because a new Owner is ill advised to raise billing rates any time in the first year of Ownership.

Personal Property Value
The value of a Seller's Personal Property is: "What you would have to pay for each item, same age and condition, given a reasonable time to find it." Thus, a Seller is well advised to gather market value information in advance. Software is usually valued at original cost less the cost of any Updates that are available. Leasehold improvements are current book value, but could change when the Allocation is negotiated.

Real Estate and Leases
If you own the Real Estate, and wish to sell it with the Practice, we will gather the necessary "Comps", to establish the best price for your offering. Both of us are licensed to handle the Real Estate portion as well as the Business.

If you wish to lease your Real Estate to the Purchaser, we will research the market, and recommend the best lease arrangement.

If you are leasing office space, it is paramount that you have a good Option for renewal. Moving a Practice, especially if it services an appreciable number of Tax clients, will certainly result in the loss of a number of Tax clients - and reduce the final amount received in the sale.