Business Acquisition and Succession Planning for an Accounting Practice: Thinking Through the Best Strategies on Each Side
Joseph Darby III presented the seminar, "Business Acquisition and Succession Planning for an Accounting Practice: Thinking Through the Best Strategies on Each Side," at an event sponsored by the Massachusetts Association of Accountants on May 22, 2018.
The seminar addressed the topic of how an accountant can sell or transfer an accounting practice to another practitioner with the maximum benefit for both parties.
This course reviewed all common acquisition structures, which can range from "selling" the business to younger members of the practice, to merging into another existing practice for a transition period, to simply an outright sale of the practice. Specific topics included:
- Should the acquirer purchase the stock (equity) or just the assets?
- Should the acquisition be through a C corporation, S corporation, or LLC (either a partnership or a single-member LLC)?
- When would a "tax free" merger make sense?
- Do you make the transition over time, or should both sides "bite the bullet" and do it quickly?
- How long, if at all, should the selling practitioner stay involved?
- How can the seller "groom" the practice to achieve the maximum value?
- What are the best tax strategies, especially in light of the changes in the 2017 Tax Act?
This program looked at both sides of the transaction and helped each practitioner think through and develop the best strategy for their own practice.