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Practice mgmt

How can a firm owner sell a fully virtual tax and accounting practice quickly and on good terms?

50:58From the June 12 call · PDF Redaction, 7216 Concerns, and Evaluating Blue J for Tax Review

One member described selling their firm by posting on Twitter/X asking 'does anyone want to buy a fully virtual tax and accounting firm?' without even naming the firm, and received 141 offers within a week. Many respondents were people known from communities like TCR and tax retreat events. The member also posted in TCR and 'Realize' and got offers there too. They ended up selling to a buyer (named as Nicole Davis, known from tax Twitter) for 100% of the purchase price upfront with no retention contingencies, at 1.5x revenue, after fielding and comparing multiple counteroffers. A lawyer reviewed the final contract. The member's takeaway was that because a virtual firm's location doesn't matter, buyers can come from anywhere, and the volume of interest suggested buyers wanted the book of business itself rather than anything unique about the firm - so it doesn't hurt to test the market even if you don't intend to sell immediately, since exploring doesn't commit you to a sale.

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