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Sound accounting systems and software are vital in a potential acquisition or merger of an accounting firm, with some acquirers placing it above having a physical office space, says one accounting broker.
How your software choices impact your firm's value
11 March 2019
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5 minute read
Speaking to New Accountant, Growth Focus managing director Steven Fine said an accounting firm looking to acquire would place a key consideration on the accounting system and software used by a selling business.
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“Systems and software are playing a more important role in valuations,” said Mr Fine.
“The easier and more accessible client history and client records are, the higher the value, as it makes the transition from vendor to new acquire that much easier.”
Correspondingly, Mr Fine said that focus means that some acquirers would find a firm with a sound system in place more desirable than a firm with a recognised office space.
“It depends on the buyer. Some buyers find it attractive if there is no office as they can easily bolt the practice onto their existing practice,” said Mr Fine.
“In some cases with larger acquisitions, it is preferable that there is an existing infrastructure that comes with premises and staff.
“The attractiveness of an office will greatly depend on the type of acquirer and their current needs.”
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