If you're an accountant contemplating selling your practice, there's a crucial factor you need to consider: Making Tax Digital (MTD). As the deadline for MTD implementation draws closer, it's becoming increasingly evident that now is the best time to begin the process of selling your business. Here's why waiting could cost you more than you think.
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A Flood of Practices Will Hit the Market Soon
MTD represents a significant shift in the way accountancy practices operate. Many accountants, especially those who have been in the industry for decades, are considering selling their practices rather than adapting to the new digital environment. This means a large number of practices are expected to hit the market in the near future.
Once this happens, we’ll see the market shift from a seller's market to a buyer's market, which can drastically affect the value of your business. The sheer volume of practices available will give buyers the upper hand, allowing them to be more selective and drive down prices. If you wait until this flood hits, you risk selling for less than your practice is worth.
The Current Market Favours Sellers – But Not for Long
Right now, there's still an opportunity to sell at a premium. The demand for established accountancy practices is steady, and buyers are willing to pay for a business that already has a loyal client base and streamlined processes. However, this favourable condition is not going to last indefinitely.
As the MTD implementation date inches closer, more and more accountants will look to offload their practices. It's a classic supply and demand scenario: once there’s an oversupply of practices for sale, prices will inevitably decline.
Timing Is Everything
To secure the best price for your practice, timing is key. Starting the process now, rather than waiting, gives you the upper hand. Selling a business is not an overnight process—it involves valuations, negotiations, and finding the right buyer who aligns with your values and your clients' needs. By beginning your search now, you ensure that you have enough time to get the best deal.
Don’t Let the Market Leave You Behind
The accountancy market is on the verge of a significant transformation, and those who act quickly stand to benefit the most. If you're considering selling your practice, start the process now to avoid the potential market saturation that MTD will bring. The longer you wait, the more you risk getting caught in a buyer's market, where prices are driven down, and your business's value is compromised.
Ready to Sell? We’re Here to Help.
At Retiring Accountant, we specialise in the sale and acquisition of accountancy practices. We understand the market dynamics and will work with you to secure the best possible outcome for your business. Don't let the upcoming changes catch you off guard—reach out to us today to start planning for your future.
