Accounting Services Business

A certified public account established a successful accounting firm but had been unable to envision, much less create, an exit strategy to enable him to derive value from the accounting firm. After an analysis, he agreed that in large part he had not been delegating tasks or training his staff. He also saw that much of the activity that he had been doing through the professional corporation was not properly done through that entity. He agreed to create borders between his consulting activity, which involved certain active management tasks for other businesses, and his accounting practice. This made sense from a business and liability standpoint. Having more closely defined his accounting practice, he identified an accounting manager who could be an owner.

In an interview with the accounting manager, it was determined that the accounting manager assumed that ownership in the firm was not a possibility. After a process of creating a succession plan for the firm, the accounting manager and the founder were able to agree upon a method of purchase of an interest in the firm. The succession plan established an exit strategy for the founder and the parties were able to negotiate a buy-sell agreement establishing the value of the firm among them and providing for contingency purchase of ownership shares.