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A Blog dedicated the latest happenings in the accounting practice sales industry. Including new CPA and accounting practice listings for sale. |
Many believe that due diligence is the first step in negotiating a purchase price for an accounting practice that is for sale. This is not necessarily the case. The due diligence process is a very sensitive issue for the seller. He or she will not be looking to divulge extremely confidential information to anyone average joe off the street who is "interested in purchasing an accounting practice." Potential suitors should enter into a formal confidentiality agreement prior investigating the owner's books and records. This document should prohibit the buyer from soliciting the seller's client base and using this information for competitive purposes without legal ramifications for doing so.
At Naab Consulting, we would like to see a letter of intent agreed upon by both sides prior to starting the due diligence process. This letter of intent should be a non binding document subject to due diligence. This document will lead to a common understanding between both the buyer and seller of the intent to purchase with some important factors being agreed upon, such as price, terms, conditions, etc.
