{"id":21391,"date":"2012-07-24t03:41:02","date_gmt":"2012-07-24t07:41:02","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=21391"},"modified":"2023-05-04t10:56:27","modified_gmt":"2023-05-04t14:56:27","slug":"how-accountants-can-keep-the-business-when-a-client-wants-to-sell-theirs","status":"publish","type":"post","link":"\/\/www.g005e.com\/2012\/07\/24\/how-accountants-can-keep-the-business-when-a-client-wants-to-sell-theirs\/","title":{"rendered":"how accountants can keep the business when a client wants to sell theirs"},"content":{"rendered":"
the four-step process to use when a client asks for an outside consultant. question:<\/strong> i have a client who’s thinking of selling his business, and he asked me to recommend a \u201cconsultant\u201d to help him get his business in shape to sell.\u00a0 i am afraid that if he finds someone on his own i\u2019ll lose control of the client. he might end up not selling and i could lose the client. i do not know anyone to recommend.\u00a0 what do you suggest i do?<\/p>\n ed’s response <\/strong>(including the 20-item checklist, “preliminary document request for a business valuation”):<\/strong><\/p>\n i suggest that you decide what is best for the client and proceed that way.\u00a0 you can find consultants by contacting other cpas, attorneys, or business brokers that work in this area.<\/p>\n however, i also think that this is something where you can probably do most of the work yourself or through your firm.\u00a0 it is not a magic process, but a four-part process.<\/p>\n the first part is to collect and organize all the information a buyer would need to see.\u00a0 the second part is to work with the client to highlight the benefits and advantages to a buyer.\u00a0 the third part would be to help the client identify potential buyers and determine if there are any strategic buyers that could be approached.\u00a0 the fourth part is to help the client determine a realistic selling price and a strategy for setting the starting price in the negotiations.<\/p>\n most accountants can organize existing data.\u00a0 what is needed is a road map of the information that will be presented to a potential buyer.\u00a0 i use a document request checklist for the business valuations i do.\u00a0 this list can be used as a guide of what needs to be gathered for a potential buyer.\u00a0 the buyer will need the information to determine the business\u2019 value \u2013 it is the same information on the checklist.<\/p>\n the second part is to go through the client\u2019s numbers and business model to determine why a buyer would want to acquire the company and what they intend to do with it and then position the business accordingly.\u00a0 part of determining this is to factor in why your client is selling.<\/p>\n third part: in most situations, the most likely buyers are competitors or major customers.\u00a0 also, you can suggest latent attributes of the business that might be synergistic with businesses that are not competitors or customers.\u00a0 here you will assist the client in identifying companies that fall into these categories.<\/p>\n the fourth part is to quantify values. \u00a0you can always refer a business appraiser for a consultation with your client.\u00a0 this is a specialized area you would not be expected to do.\u00a0 i offer a special consultation engagement meeting to help in this regard.<\/p>\n <\/p>\n this list is preliminary and upon receipt and review of the information, we may need to request additional documentation.<\/p>\n this request also applies to any related or affiliated entities or entities with common ownership that do business with the entity being valued.<\/p>\n if any information does not exist please state that.\u00a0 if any information is not immediately available, please indicate when it could be expected.\u00a0 you can black out the names of customers, suppliers, and employees if you wish.<\/p>\n we would prefer to have this information emailed to us.\u00a0 however, any format is acceptable.<\/p>\n
\n<\/strong><\/p>\nchecklist:<\/strong><\/h3>\n
preliminary document request for a business valuation<\/strong><\/h3>\n
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