As the average age of accounting firm partners steadily increases, 60% are opting for a later retirement. That makes it crucial to maximise the retirement years you do have. But when you’re managing your firm and serving your clients, it leaves little time to navigate the waters of succession, let alone develop a plan that maximises your sale price.
Are you confident that your succession will reflect your business’ full value and leave a strong legacy for your clients? Here’s why more principals are choosing to partner with a succession expert as they begin to consider retirement.
Accurately assess and valuate your business
Maximising revenue from succession is one of the top challenges for accountants today. But according to Entrepreneur.com, 98% of business owners don’t even know the value of their business, making it difficult to position yourself for a profitable sale. A like-minded partner will objectively point out what can be improved to infuse greater value into your business.
Craft a smart succession plan
Having a formal, documented succession plan is crucial to achieving maximum revenue from the sale of your business, and ensuring your hard work over the last several decades truly pays off. But there’s a lot involved in a succession plan, and a Gallup Poll revealed that 70% of businesses don’t have one. An adviser can help you develop a succession plan that positions you for a successful future.
Build a dedicated succession team
54% of partners cite training and building a great team as essential to success. The same can are crucial for your succession planning efforts. Enlisting a partner that wants the best for you and your clients can help you steer through complexities and provide crucial support as you’re running your firm.
Ensure higher client retention
Business is no longer “business as usual,” as today’s clients have so many Financial Service providers to choose from. That means if you want to retain your clients you have to compete and give them a reason to stay. By helping you create a new client-centric, multi-revenue business model, your succession partner will position you to meet client needs in an ongoing way. Clients who are well cared for are less likely to jump ship.
Build value for your business
Your succession adviser isn’t just looking to the future. A growth-minded adviser can help you implement changes now that will maximise your valuation today. By helping you incorporate new technology and build a new client-centric business model, they’ll help you position your business for the most lucrative sale.
Determine the right buyer or acquirer
With so many options for passing your business into new hands, it’s crucial to know which route will best serve your goals and clients. Working with a dedicated adviser or team can help you sort through your goals and the pros and cons of each option to make the smartest decision for your unique business situation. Whatever option you decide, your partner is your dedicated teammate in securing your strongest future.
Streamline and maximise your succession
82% of accountants say that streamlining workflow and processes is crucial to ongoing success. The same logic applies to succession planning. Working with an expert who understands the unique succession challenges of accounting firms can help you enjoy your forthcoming pre-retirement years and leave your business in the best hands.
As you work with a partner to focus on growth, clients and planning, you’ll increase your business’ value and your final payout.
Get in touch with us today to learn more about how our specialists help accounting firms maximise succession revenue and ensure a smooth transition for employees, clients and partners alike.