Is This Your Last Tax Season? Start Preparing Now!!!

1. Raise Your Rates (Yes, Even Now)

Most firms sell based on a multiple of gross revenue. Translation: Higher rates = Higher value.

Even a 10% bump this year could boost your sale price dollar-for-dollar. And if you don’t do it, your buyer will – and that could lead to client attrition that messes with your earn-out later.

2. Write Down What’s in Your Head

You know those “special” clients—the ones with odd filing quirks or that “one-off” rate you gave them in 2008? That’s all in your brain… and nowhere else.

Document it now while you’re dealing with each client one by one anyways: client notes, billing nuances, or anything only you know. This makes your firm easier to sell and transition, plus it saves you from frantic, post-sale “Did we file the Johnsons’ extension?” texts from your buyer.

3. Start (Secretly) Planning for Staff Changes

Tax season isn’t the time to replace anyone, but it is the time to think ahead. If you know you’ll need staffing changes before selling, start mapping it out now. The last thing you want is staffing drama when you’re trying to close a deal.

4. Clean Up Your Expenses (Your Buyer Will Notice)

Your profit margin – or Seller’s Discretionary Earnings (SDE) – is everything when it comes to your sale price.

Be honest: Are you paying Cousin Bob $50/hour to “handle tech stuff” (aka watch YouTube)? Writing off that golf membership as “client entertainment”? That’s crunching your profit margin in a way you need to be ready to explain.

Make a list of expenses that could (or should) be adjusted later. It could mean the difference between a good sale and a great one.

5. Find Your Deal Team – Before You Need Them

Good brokers and attorneys who know financial firms? They get busy fast.
Start building those relationships now – during tax season when they’re often a little quieter. By the time you’re ready to sell, you’ll have the right people in your corner.

The Bottom Line:

Prepping your firm for sale doesn’t have to mean taking on “one more thing” during tax season. These steps fit right into your day-to-day. And they’ll put you miles ahead when you’re ready to move on – whether that’s next year or five years down the road.