If you’ve been thinking about selling your practice, the time to start planning is now, not after next tax season. Every fall we hear from owners who just wrapped up the October 15 deadline and are asking themselves whether they really want to do another busy season. That’s a natural moment to think about your exit, and acting on it early gives you far more options.
After nearly 30 years of helping CPA, EA, and accounting practice owners across the Midwest sell their firms, we’ve seen that the sellers who start the conversation in the fall almost always have a smoother, more successful transition.
Why Timing Matters
Most buyers want to take over a practice before tax season, not in the middle of it. A closing in November or December lets the buyer send engagement letters under their own name, introduce themselves to clients, and get comfortable with staff and systems before the January rush.
That timeline works in reverse, too. Finding the right buyer, negotiating a letter of intent, completing due diligence, securing financing, and finalizing a purchase agreement typically takes several months. Owners who wait until spring often find themselves pushing their closing out another full year.
There’s also real value in staying involved during the buyer’s first tax season. Clients feel far more comfortable when they see the owner they trust working alongside the new firm, and that continuity is one of the biggest drivers of strong client retention.
What to Get in Order Now
You don’t need everything perfect before reaching out, but a little preparation goes a long way. Buyers will want to see your last three years of tax returns and P&Ls, along with year-to-date numbers. Having those ready makes it much easier to establish a fair value and move quickly once the right buyer is found.
It also helps to have a clear picture of your client base, including the mix of individual and business returns, billing practices, and how long clients have been with you. Think through your staff as well, since buyers place a high value on experienced employees who are willing to stay on.
Finally, take a look at your lease, software contracts, and equipment agreements. Knowing what can be assigned, extended, or terminated avoids surprises late in the process.
Financing and Buyer Readiness
Many of today’s buyers rely on SBA financing to fund an acquisition, and lenders look closely at the seller’s numbers. Clean, consistent financials and tax returns for the last few years make the underwriting process faster and help keep the deal on schedule.
Bank financing is also good news for sellers. It often means a larger portion of the purchase price is paid in full at closing rather than spread out over several years.
On our end, we screen buyers before they ever learn who you are. Every buyer signs a confidentiality agreement, and we evaluate their experience, capacity, and financial position so you only spend time with serious, qualified candidates.
Start the Conversation
Selling your practice is one of the biggest decisions of your career, and you shouldn’t have to navigate it alone. Since 1997, Naab Consulting has focused exclusively on the sale of CPA, EA, and accounting practices, and we work on a success-based fee with no upfront costs. A confidential conversation costs you nothing and can give you a clear sense of what your practice is worth and what a realistic timeline looks like.
Call Brian Naab at (888) 726-6282 Ext. 2, text or call (317) 523-7596, or email brian@naabconsulting.com. You can also learn more at www.NaabConsulting.com.