How do you buy a practice?
29 RepliesJump to last post
Im relatively new to this field have a couple of million under assets, I want to buy a practice to compliment our CPA firm, and build off that. I am looking at practices in the 25M range, Ive tried FPTransitions, but they dont have a lot for sale. Has anyone had any experience in buying a practice? I hear multiples of about 1.5 X Fee revenue, which I find reasonable, but I want to get more info.
Odds of clients transitioning? Best place to find sellers?
Did you read my post? Here is a direct quote from it.
"Ive tried FPTransitions, but they dont have a lot for sale. "
Yeah, no not really until after I posted. This forum ought to have a delete button.
Hope I didn't ruin your day.
I couldnt bring myself to go outside all day after reading your post. Seriously tho, anyone ever find any leads off there? I am in New York, and their website says they only have 1 active seller in my state, not enough to warrant the 100 fee. If they had 30 active sellers, id be signed up fast
Why don't you just go through the phone book and call the practitioners in a thrity molie redius of your shop? tell them you are in the market for a book and that you'd like to see if they're interested. You're looking to pay 150% of trailing 12 but the number can go up for the right situation.
If you're in NY there ought to be severalteen offices around you.
[quote=Whomitmayconcer]
Why don't you just go through the phone book and call the practitioners in a thrity molie redius of your shop? tell them you are in the market for a book and that you'd like to see if they're interested. You're looking to pay 150% of trailing 12 but the number can go up for the right situation.
If you're in NY there ought to be severalteen offices around you.
[/quote]
Good idea! Start talking to sellers now and you might find a bargain if we get are really hard downturn in the next couple of years.
It might be a good way to get some staff, too. Repeated contacts - this is a leveraged form of "prospecting".
[quote=roostertale][quote=Whomitmayconcer]
Why don't you just go through the phone book and call the practitioners in a thrity molie redius of your shop? tell them you are in the market for a book and that you'd like to see if they're interested. You're looking to pay 150% of trailing 12 but the number can go up for the right situation.
If you're in NY there ought to be severalteen offices around you.
[/quote]
Good idea! Start talking to sellers now and you might find a bargain if we get are really hard downturn in the next couple of years.
It might be a good way to get some staff, too. Repeated contacts - this is a leveraged form of "prospecting".
[/quote] If you handed me a check for 1.5 times my trailing 12 GSC I would listen.For my prospecting reference ( I have been calling other firms for licensed assistants but not practice sellers) - how much do you manage, and would you generally see someone like yourself wanting to come over as an employee, at least for a transitional period.
What motivates you to consider selling - are you just burned out on the biz?
not really serious, and no I would not go anywhere. I would stay here and do it on my terms or not at all. I enjoy the business and continue to grow it so i would only listen to hear if someone wants to overpay.
So folks, if you are thinking of prospecting to buy a practice, start now, but be prepared to wait until there is a serious down market to help the negotiation. Build cash and relationships now.
[quote=roostertale]
So folks, if you are thinking of prospecting to buy a practice, start now, but be prepared to wait until there is a serious down market to help the negotiation. Build cash and relationships now.
[/quote] lots of ca$h relationships not so much.Just because this is the #3 career in the U.S., right behind software engineer and college professor ... look at Allreit, he has #2 and #3 sewed up. Maybe he'd be willing to part with something, for a big pile of cash, of course.
Seriously, skolbro, unless you are getting all of your money up front, the relationship is important. If you could sell for all cash, great, but it could be advantageous to buying and selling to work it out over some time.
My guess is there will be plenty of sellers, and money will be cheaper, during the next recessionl. Now seems like a pretty foolish time to buy.