Accountants with high-net-worth clients are well positioned to get significant remuneration for their practices and their efforts. The key is doing a deal that is not a conventional sale of an accounting practice

By Russ Alan Prince

Home - For a number of reasons, there is increasing pressure on many smaller and mid-sized accounting firms to sell. Most of these deals have a similar arrangement where the multiple is based on the firm’s revenue – around one times annual earnings.

In these acquisitions, the presumptions often include operational synergies with accompanying decreased costs and that the sellers will be able to transition their clients. In a great many cases, these premises are in error resulting in “bad feelings” and the sellers failing to obtain all the monies they expected. For example, there is regularly the belief that the sellers will grow their practices for a period of time even when they were apparently not able to do so before the sale. Moreover, many times the operational synergies do not occur.

Read the full story here.

Comments

Investment-Banking

Welcome to a comprehensive web site on investment banking careers. Investment Banks help companies and governments issue securities, help investors purchase securities, manage financial assets, trade securities and provide financial advice. The top investment banks including Goldman Sachs , JP Morgan and Morgan Stanley are said to be in the bulge bracket . Other investment banks are regionally oriented or situated in the middle market (e.g. Piper Jaffray ). Others are small, specialized firms called boutiques which might be oriented toward an industry vertical, bond-trading, M&A advisory, technical analysis or program trading. Firms have lots of different areas and groups within them. In most firms, there is sales and trading which works with owners of securities, investment banking which works with issuers of securities (firms and governments) and capital markets which goes in between the other two. Further Information on Inves...

Wealth Management & FinTech Revolution

WealthManagement.com - ‎May 31, 2016‎ Wealth managers are maintaining only a tenuous grip on their client bases—and technology, or lack thereof, may be to blame. A recent report by PricewaterhouseCoopers casts light on just how unsatisfied clients are, generally, with the advice they're ... Tech Illiteracy Puts Wealth Managers at Risk ThinkAdvisor - ‎Jun 1, 2016‎ Personal service and rapport with clients differentiate wealth managers from other financial offerings, but digital and algorithmic innovation is creating the possibility of the wealth manager's role being increasingly delegated to technology — and ... Warning: 'Fintech' threat to global wealth management sector players Herald Scotland - ‎Jun 1, 2016‎ WEALTH management is among the least technologically-literate financial services sub-sectors globally, and already finds itself well adrift of o...

Wealth Management

Search This Blog