Advise on selling practice

I would like to sell a book of business. I would like to get some advice from people who have done this. Which would include what you did if you didn't sell through a business broker. I have gotten wildly different quotes from professional brokers about the cost to sell a book of business. The highest quoters never got back to me when I had questions. It's unclear what they would do for me: just advertising it? Have you sold your business or book of business? Did you use an attorney to sign up the sale contract? Of course, a main concern is client confidentially. How did you deal with this? If you were the buyer how did you introduce yourself to the new clients?

If you were the buyer how did you introduce yourself to the new clients?

I was the buyer in two instances and in both case the introduction to the client base was done in a joint letter (drafted and mailed by me). The seller introduced me, my qualifications etc and the reason for the change. I basically listed my value proposition with an offer for one free consultation before they signed my engagement letter. I also had the right of refusal on any client based on my reasons. I did exercise it wisely to get rid of difficult, late paying clients.

My deal in both instances was contingent with how many of the clients signed up with me and how many stayed for 3 years. The purchase price was paid over three years. The sellers helped me with prior issues etc.

The seller ran our agreement by his attorney. We drafted the agreement jointly based on our verbal agreement. The sellers were known to me so it was easy to talk things over when we disagreed.

I would NOT buy anything if the seller made me uncomfortable, regardless of the quality of their clients.

I would like to sell a book of business. I would like to get some advice from people who have done this. Which would include what you did if you didn't sell through a business broker. I have gotten wildly different quotes from professional brokers about the cost to sell a book of business. The highest quoters never got back to me when I had questions. It's unclear what they would do for me: just advertising it? Have you sold your business or book of business? Did you use an attorney to sign up the sale contract? Of course, a main concern is client confidentially. How did you deal with this? If you were the buyer how did you introduce yourself to the new clients?

I sold about 50K of clients about 3 years ago and literally did not use a lawyer etc. I drew up a sales contract and a promissory note and I learned a LONG time ago. If you don't trust the buyer to pay you, probably better to find another buyer.

On a big deal, say 100K plus, I'd get a security agreement and or personal guaranty but trust is important as well.

Are you having trouble finding buyers?

Thanks. I only have contacted a few business brokers. It's not a large book of business and the price they would charge seemed high. A few of them said that I would get paid the full price for the book of business at the time of the sale. Does anyone have experience with this by selling through a broker? I'm a bit hesitant selling on my own because I wouldn't know the buyer.

Hello Marie,

I am a CPA currently looking to purchase a tax practice in CA. Please check your PMs and reach out to me at your earliest convenience to discuss further.