There will be three time your business CAN be sold: when you WANT to sell it, when you NEED to sell it, and when your heirs WILL sell it!
We all like to think we are in control of everything in our lives but we have all known people that have had a “plan”, only to see life’s circumstances make changes to their plan without warning.
With these thoughts in mind, when do you think it would be best (most profitable) time to sell your CPA firm or tax practice? You are correct. You should sell your firm when you want to. For the purposes of our discussion here, we will define “want to” as the time when a person recognizes that it is time to sell, for whatever reason.
We have sold firms when the seller needed to sell, usually for health reasons. In most all cases, the firm’s value was greatly diminished simply because of the situation. Clients were leaving the firm to find a new accountant or tax preparer and employees saw the need to find new employment. You can see how this situation is a train wreck!
As you can imagine waiting to sell and letting your heirs deal with the transaction is an even worse financial decision than selling for health reasons.
Making a good decision to sell at the right time will always be the best choice for everyone: you, your family, your employees and your clients.