Does Naab Consulting provide assistance in financing accounting practice sales?

Naab Consulting2021-02-01T20:41:17+00:00February 1st, 2021|

What is the average profit margin for an accounting practice?

Naab Consulting2021-02-01T20:41:08+00:00February 1st, 2021|

If I am looking to buy an accounting practice, will a down payment be required?

Naab Consulting2021-02-01T20:40:58+00:00February 1st, 2021|

Why do people sell their accounting firm?

Naab Consulting2021-02-01T20:40:38+00:00February 1st, 2021|

Is equipment included in the sale?

Naab Consulting2021-02-01T20:40:28+00:00February 1st, 2021|

How long with the seller assist in the transition period?

Naab Consulting2021-02-01T20:40:19+00:00February 1st, 2021|

Let Us Handle The Sales Process

Q: Does Naab Consulting provide assistance in financing accounting practice sales?

Yes, we do! When you are purchasing an accounting firm, take advantage of lenders we use throughout the U.S. who can lend up to 100% of the purchase price. This means that a buyer can purchase a CPA practice using the business’ cash flow.

Q: What is the average profit margin for an accounting practice?

Each practice is different and will yield a different net income, but that said, most practices should have a profit margin of at least 40%. The higher the profit margin, the higher buyer activity a seller can expect to achieve when trying to sell their practice. This is a key component buyers will review when looking at different practices.

Q: If I am looking to buy an accounting practice, will a down payment be required?

Yes. If you are looking at putting cash down, the seller will require a down payment at closing. This helps the seller know that you are committed to this purchase. We trust you can appreciate this from the sellers perspective. If you are looking at outside bank financing, most lenders will require at least a 10%-20% cash injection depending on the size of the loan, cash flow of the practice, buyer's credit history and a variety of other factors. Most lenders will also loan money for additional working capital. There are both conventional and SBA lenders . A vast majority of our recent deals have been SBA loans.

Q: Why do people sell their accounting firm?

Accountants and CPAs are looking to sell their business for a variety of reasons. Retirement is the most popular reason but there are a few more you might not be aware of, such as: Other business interest Health concerns Relocation Burnt out

Q: Is equipment included in the sale?

This really depends on the deal. Sometimes equipment is included in the sales price, sometimes it will be an additional item. We do have lenders that can include additional money for the equipment if needed for the buyer.

Q: How long with the seller assist in the transition period?

Every practice is different and every owner and situation is different. Generally, the smaller the practice, the shorter the transition period. Practices ranging from $250,000 or less will typically be in the 30-90 day range. Larger practices ($1,000,000+) may be up to a year.