With the market being a buoyed one with buyers still seeking out good practices, we still find a ‘she’ll be right’ attitude towards the buy / sell of firms.
Three points where ‘she’ll be right’ does not work:
Staff Agreements: Please, if you are a small firm that has no employee not agreements in place you are giving away the farm. Implementation of work place agreements might be slightly touchy. Aim for start of new year, new systems, review (internal / external) etc. Check out: www.workforceguardian.com.au
Cultural Fit: Things change, people change, it’s daunting at times, it good to stay fresh… but what is cultural fit? Flexibility; yes, some things are changing and others staying the same. New generations coming into the industry as staff or clients, one thing is a given, there will be different views. Most people will adapt to survive, however some feedback from leaders and staff up front will help to smooth the transition and achieve a strong cultural fit.
Client on-boarding: sell, sell, sell… or is it service, service, service. Being time poor is a bad excuse for not sitting down and having an action plan. An accurate CRM is essential to ensure you work the client base properly. A ‘set and forget’ at purchase is dangerous, both financially and for your brand.Transitioning clients by reviewing and upgrading the firm’s brand and value proposition is essential. Use formal client integration techniques including scripts to guide your team. Just having an introduction to clients and not re-engaging them as the ‘new’ firm comes into being can lead to a significant loss of time and money.
Use specialists and ask for external advice. It’s also important to have a lawyer that knows the complexity of accountancy sale contracts and will anticipate some of the challenges you will face during transition.
A strong TRANSITION strategy is essential to maximise the value of your purchase or sale.
At Jadeja Partners, we can guide you through the full M&A cycle from Search / Introduction and Practice Optimisation through to Deal Facilitation and Transition Support.
Contact Magnus Yoshikawa on Ph 1300 523 352
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