Frequently Asked Questions
Below is more information regarding some of our most commonly asked questions.
Don't see what you were looking for? We understand - everyone's business is unique! Please reach out via our Contact Us page and we will be happy to connect with you to provide more information.
How do you find buyers for my practice while maintaining confidentiality?
First, we remove any of your identifying details prior to any advertisement. Then, that anonymized listing is shared through our large network of accounting professionals and via appropriate social media channels. We will not ever openly name and list your practice on our website for public view.
What are down payment requirements?
As with any large transaction, whether or not a down payment is required will depend on the circumstances. Most commonly, when the sale is structured with financing, the seller requires a down payment to act as a guarantee of commitment from the buyer. Additionally, there could be other requirements from banks and the Small Business Administration for which the minimum down payment amount is usually anywhere between 10% to 25%.
I am ready to sell my practice now; how long should I expect the sales cycle will take?
Once all of the preparation is complete and you are ready to list your practice , we would anticipate introducing you to multiple potential buyers within the first few weeks and the average timeline to finalize the subsequent sale is around three months.
After the sale, who is responsible for client retention?
In general, whether or not there is a contractual responsibility related to retention has to do with the structure of sale and is entirely up to both parties to include. It can have benefits to both buyer (guarantees seller's work during transition) and seller (can increase initial cash payment up front). However, HNF Management Consultants Corp. does not typically include these guarantees in our negotiations nor do we recommend them. We feel the exclusion of these guarantees can go further to ensure that your clients are treated with the same quality of care long after the sale of your practice as they were prior to the sale. If you choose to include the clauses, we recommend minimizing the percentage of the deal price which is tied to guarantee.
When I sell, I want to stay on for a period of time to ensure a smooth transition. Is this typical?
Though your involvement may not be full-time or part-time (you may only need to be available to answer questions), it is common for a seller to stay on post-sale. Some stay on for as little as a few weeks, others about a year or one tax season. The smoothest transitions for sellers, buyers, and clients tend to be anywhere between two to three years, often with decreasing involvement from the seller over that time.