#AccountingShowLA: Things you need to know if you want to sell (or buy) an accounting firm!
Blake and David met up with two seasoned mergers & acquisitions experts, Dr. Curtis Cochran, and Shannon Hay, at the Accounting & Finance Show LA to ask them what accounting and bookkeeping firm owners need to know if they want to sell or buy a firm someday. Questions include: How do you value a firm? Is it a buyers' or a sellers' market? What sort of multiples can I expect to receive or pay? Does cloud accounting make a difference?
Sponsor
- Accounting & Finance Show: http://cloudaccountingpodcast.promo/accountingshowla
Show Notes
- 00:32 -- Greetings from sunny L.A. and the Accounting and Finance Show!
- 01:33 -- Podcasting - Blake's gift to the world!
- 01:49 -- Meet Shannon Hay, VP at Live Oak Bank
- 02:44 -- Meet Dr. Curtis Cochran, President/CEO of Cochran Consulting
- 03:42 -- Why Cochran gives every new client a thorough exam
- 05:45 -- What are the key considerations for selling your accounting firm?
- 06:44 -- Are you worth less if you don't have your head, or your book of business in the cloud?
- 07:09 -- Shannon talks valuation and the many variables involved
- 09:27 -- Evaluating an accounting or bookkeeping firm's worth is an art, not a science
- 10:37 -- It's a numbers game. The gentlemen discuss multiples
- 11:55 -- Curtis argues that annual cash flow is a better determinant of value than gross revenue
- 13:26 -- Why sell? Shannon talks about the various reasons firm owners want out
- 15:59 -- One-stop shopping is not just for Amazon. Accounting and bookkeeping clients want more than just the basics
- 17:37 -- Want to start your own accounting firm? Odds are stacked in your favor, if you have the right combination of knowledge, tech, and exceptional customer service
- 18:25 -- Buyer's market or seller's market? Our guests have differing points of view
- 19:33 -- Shannon believes many boomer firm owners still haven't decided to take their leave yet
- 20:26 -- The young guns aren't buying up accounting firms. A growing consensus of younger accountants thinks it's easier to just steal clients away
- 22:25 -- Don't wait til it's too late. Even if you didn't start your firm with the finish line in mind, now is the time to get that exit plan in place!
- 24:21 -- Buyers need to see the potential, not the past
- 27:01 -- If you are sans exit plan, you're not alone. A fair number of large and small companies don't have one either
Connect with Our Panelists
- Dr. Curtis Cochran (President/CEO of Cochran Consulting): https://www.linkedin.com/in/ccochranconsulting/
- Shannon Hay (Vice President, Accounting and Tax at Live Oak Bank): https://www.linkedin.com/in/shannon-hay-1b6bb88/
Get in Touch
Thanks for listening and for the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and, if you like what you hear, please do us a favor and write a review on iTunes, or Podchaser. Interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus.
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