What does Roger (AKA you!) need to do before retirement?

Meet “Retiring Roger”. Now in his sixties, Roger stands at a pivotal moment contemplating retirement. Despite his longing for a substantial holiday with his wife, his demanding schedule makes it challenging to step out of the office, even for a brief respite.

With an annual turnover of around $500k and a dedicated team, Roger encountered a setback about two years ago when his assumed succession plan unexpectedly walked out the door as they ventured into establishing their own practice. This unforeseen turn of events has left Roger uncertain about his next steps.

Having a well-planned succession strategy is crucial for those considering retirement. Initiating conversations with potential successors before they depart is essential to ensure a seamless transition.

Addressing Key Challenges

Roger’s realisation about the importance of considering his exit options dawned upon him when one of his major clients shifted their accounts to another Accountant upon handing over the business to their son. This shift was attributed to the perception that Roger wasn’t “progressive” enough for the son’s liking.

In addition to this, Roger’s long-standing dedication to his work, coupled with infrequent breaks, has hindered his ability to travel with his wife. This raises questions about who would oversee the practice in Roger’s absence.


Modernisation and Investment

Furthermore, Roger has yet to seize the opportunity to modernise his practice or transition his clients to digital platforms like Xero. This failure to adapt, combined with stagnant charge-out rates, has made his practice less appealing and valuable than its potential.

Several factors contribute to the diminished value of Roger’s practice:

  • The absence of a succession plan, potentially leading to a forced sale.
  • Buyer apprehensions regarding client retention, particularly with retirements and declining fee levels.
  • The need for modernisation and investment in the practice’s infrastructure.
  • Roger’s desire to retain office presence post-sale could influence the sale price.
  • The risk of client attrition during the transition period and subsequent clawbacks.
  • The daunting task for potential buyers of digitising data from antiquated systems.

Does this situation sound familiar?

It’s crucial to prioritise finding a succession plan. Procrastination only complicates matters further. Handing over the baton is far smoother than navigating a sale, considering the familiarity with clients, staff, and systems.

So, how does Abacus assist Practices?

We specialise in advising Accountants on Mergers, Acquisitions, and the sale of their Practice. Our passion for what we do is reflected in the positive feedback from our clients. 

If you’re considering your options, why not reach out to us and discover why now is the ideal time to explore them further?

Call us on 1300 121 013.

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