How to go after this client list (ethically)

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#1
Preppie  
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There was an EA in private practice about a mile from my location. We seemed to have a good amount of target market overlap. He even invited me to lunch one day last year to discuss a merger, but it didn't fit in with my long term plans.

Yesterday I picked up a new client who brought in his 2016 return that had been prepared by the guy up the road. I asked why the client was switching to me this year, and his answer was "Jim" doesn't answer his phone or emails. I drove by his office and it looks abandoned.

I checked Inspector Google for any news and there are 5 new 1-star reviews posted for this guy stating he is not responsive and seems to be out of business. Meaning there are about 400 clients out there this year who need a tax preparer and would probably be a good fit for me. How can I go after them? And - is it ethical to go after them?
 

#2
ATSMAN  
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I am assuming that after your last lunch with this fellow you did not have a falling out! I would approach this person after tax season and make another business proposal. Find out what is going on first, do your homework. There may be reasons why the office looks abandoned.

I once purchased a list of clients from a tax preparer in my area who had a stroke and was going to partially retire.

If you work in a small tight knit community, every one knows what is going on so the word may spread like wild fire after you acquire a bunch of his clients.
 

#3
chris  
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If someone abandons their business there is no reason why you can't go after their clients -- but I'm not sure what your definition of 'go after' is?

I'd probably try to contact the guy and offer to buy his customer list at a deeply discounted rate due to the goodwill assault; and tell him if he doesn't want to do that deal then you'll just advertise that you are here to help anyone who was left hanging.

I had a similar situation here but really didn't want to take on any new clients. After awhile one of the guy's kids took the business over and now relentlessly advertises on the radio with the "if you owe the IRS thousands I can turn that into pennies" fantasy pitch.
Site admin and software developer for TaxProTalk.com and https://TheSiteFactory.com
 

#4
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I don't see an ethical issue at all. But it does seem strange that an EA with 400 clients just disappeared. Maybe there's a health issue at play? Did you check the obituaries?

Every day that goes by, the customer list becomes much less valuable. By April 17th it will be effectively worth zero. Do you know what proportion of clients are early filers which are already gone? How many new clients could you feasibly take on, anyway?
 

#5
Preppie  
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I have tried to contact him, but his phone is disconnected, he does not answer email or contact requests through his website, or through LinkedIn. Asked a board member at the local NAEA chapter if anyone knew anything. No one there was aware of anything. It's intriguing.

Thanks for the suggestions!
 

#6
ATSMAN  
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Preppie wrote:I have tried to contact him, but his phone is disconnected, he does not answer email or contact requests through his website, or through LinkedIn. ...

Thanks for the suggestions!


Then you are on the clear in my opinion. I am surprised that he shut down without informing his clients. Must have been a sudden event!
 

#7
HowardS  
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Step up your local advertising real soon.
Retired, no salvage value.
 

#8
ATSMAN  
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HowardS wrote:Step up your local advertising real soon.


How about a bill board in the parking lot redirecting to your office :twisted:
 

#9
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Sorry to be the voyeur here , but this is kind of a fascinating but at the same time pretty sad story. I’m really curious what the hell happened to this guy.
But I don’t see any ethical issue/.
The guy is clearly communicating that he’s not preparing returns during tax season. You are free to approach and acquire them
 

#10
philly  
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See if you can get some information concerning this EA. Perhaps the EA had some unethical dealings and now is in the Witness Protection Program. Or perhaps this person had an unexpected heart attack.

Try to contact a spouse or a family member concerning taking over the practice.
 

#11
ATSMAN  
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Something unexpected must have happened. I believe OP tried to call but got nowhere!
If it is a small town someone may know what happened!
 

#12
Preppie  
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I picked up another one of his former clients yesterday. I said, "I know 'Jim' and we are wondering what happened to him." They (married couple) indicated they didn't know, but they were thinking about switching anyway because their experience last year wasn't good. Essentially he was over-promising ("I'll have that done for you tomorrow.") and under-delivering (it was weeks later and multiple rescheduled appointments.)

It is certainly curious. I wish I had more time to play detective, but my phone is ringing off the hook* and I am trying to stay on top of it. Not bad for my third year in business, I think, although I am starting to wonder what my maximum capacity will be, when and how to raise my prices, and how to become as efficient as possible...





* an expression that probably makes no sense to the younger crowd!
 

#13
ATSMAN  
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Preppie wrote: I think, although I am starting to wonder what my maximum capacity will be, when and how to raise my prices, and how to become as efficient as possible...


Don't make any decisions in haste! If I were in your shoes I would give these newly acquired clients the best service you can so that they stick with you for a while. If you are in a small town, word spreads like fire and you may get a lot of referrals. I am sure many of these people have their friends and relatives going to the same guy. You have to play it strategically :P
 

#14
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I'm guessing the first thing his clients are doing is hitting google. Buy some ad words there and tailor your link to the clients you want?
 


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