{"id":124218,"date":"2024-04-08t17:00:30","date_gmt":"2024-04-08t21:00:30","guid":{"rendered":"\/\/www.g005e.com\/?p=124218"},"modified":"2024-08-29t23:53:30","modified_gmt":"2024-08-30t03:53:30","slug":"when-selling-a-firm-to-staffers-is-tricky","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/04\/08\/when-selling-a-firm-to-staffers-is-tricky\/","title":{"rendered":"when selling a firm to staffers is tricky"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-64409\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015.jpg\" alt=\"\" width=\"1600\" height=\"1063\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015.jpg 1600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015-600x399.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015-424x282.jpg 424w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015-768x510.jpg 768w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/08\/businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015-849x564.jpg 849w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/p>\n<p><strong>two writers have similar problems.<\/strong><\/p>\n<p><em>by ed mendlowitz<br \/>\n<a href=\"\/\/www.g005e.com\/shop\/101qa\/\"><i>202 questions and answers: managing an accounting practice<\/i><\/a><br \/>\n<\/em><\/p>\n<p>i received two related questions, which i\u2019ll answer together.<b><\/b><\/p>\n<p><b>first question<\/b><strong>:<\/strong> i am nearing retirement and want to sell my practice to two longtime staff people, but they don\u2019t get along, and i\u2019m afraid to sell to them. what should i do?<b><\/b><\/p>\n<blockquote><p><b>more: <\/b><a href=\"\/\/www.g005e.com\/2024\/04\/01\/want-to-merge-six-steps-to-take\/\">want to merge? six steps to take<\/a> | <a href=\"\/\/www.g005e.com\/2024\/03\/25\/how-to-raise-your-rates\/\">how to raise your rates<\/a> | <a href=\"\/\/www.g005e.com\/2024\/02\/19\/higher-fees-to-start-ten-ways-to-make-your-tax-season-better\/\">higher fees to start: ten ways to make your tax season better<\/a> | <a href=\"\/\/www.g005e.com\/2024\/01\/29\/three-ways-to-start-an-accounting-practice\/\">three ways to start an accounting practice<\/a> | <a href=\"\/\/www.g005e.com\/2024\/01\/08\/free-consultation-not-always\/\">free consultation? not always<\/a> | <a href=\"\/\/www.g005e.com\/2023\/11\/27\/referral-fee-forget-it\/\">referral fee? forget it<\/a> | <a href=\"\/\/www.g005e.com\/2023\/11\/06\/how-much-is-your-tax-practice-worth\/\">how much is your tax practice worth?<\/a> | <a href=\"\/\/www.g005e.com\/2023\/10\/16\/merge-in-lower-priced-work-without-losing-out\/\">merge in lower-priced work without losing out<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-49700 size-full\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1603911598474.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/><span style=\"color: #b79c00;\">exclusively for pro members. <\/span><\/strong><span style=\"color: #b79c00;\"><a style=\"color: #b79c00;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2024\/04\/08\/when-selling-a-firm-to-staffers-is-tricky\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p><b>second question:<\/b> i have a large individual tax practice, but also have an audit practice that is handled by different staff in my firm. how do i sell this practice? none of the larger buyers want the tax clients and none of the smaller buyers want the audit clients.<\/p>\n<p><!--more--><\/p>\n<p><b>answer<\/b><strong>:<\/strong> both questions raise the same issue: the practice is not generally salable to one person. however, they get different responses from me.<\/p>\n<p><strong>first question response:<\/strong> in the first instance with two employees, divide the clients into two groups and offer it to them in that way. let them decide if they want to be partners, or whether each will want to buy half or however you divvy it up. tell them you will want a down payment with a payout for the balance.<\/p>\n<p>there are some dangers here. one is that one, or both, can decide to \u201csteal\u201d your clients and go into business for themselves. another danger is that only one will want to buy and they couldn\u2019t handle the entire practice by him- or herself. another danger is that your division might not be completely acceptable with one or more clients \u201cbelonging\u201d to the other group. also, if there is staff it will be hard to divide the staff up, especially if they work on both groups of clients.<\/p>\n<p>some have suggested that if there is an employment agreement prohibiting \u201cstealing\u201d clients or setting a purchase price for stolen clients that will protect you. it will protect you much better than if there weren\u2019t an agreement, but it will only be as good as your willingness to enforce breaches by suing.<\/p>\n<p><strong>second question response:<\/strong> split up the clients and staff and sell it to two separate people. this should be easier to bundle than the above practice because there would be no tip-off to the staff and a much lower risk of loss. presenting it to the clients would be more difficult than if one person acquired the entire practice, but should be managed satisfactorily if the buyers are experienced in taking over practices.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>two writers have similar problems.<\/strong><br \/>\n<a href=\"\/\/www.g005e.com\/2024\/04\/08\/when-selling-a-firm-to-staffers-is-tricky\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-124231\" src=\"\/\/www.g005e.com\/wp-content\/uploads\/2024\/04\/250_mendlowitz_businessman-thinking-with-pencil-and-question-marks-depositphotos_5966599_xl-2015.png\" alt=\"\" width=\"250\" height=\"125\" \/><\/a><br \/>\n<em>by ed mendlowitz<br \/>\n<a href=\"\/\/www.g005e.com\/shop\/101qa\/\"><i>202 questions and answers: managing an accounting practice<\/i><\/a><br \/>\n<\/em><\/p>\n","protected":false},"author":1341,"featured_media":64409,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[2371,3120,3002],"tags":[],"class_list":["post-124218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mergers-acquisitions","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>when selling 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