One of the suggestions we give accountants looking to acquire a firm using some bank financing, is to use a national lender that specializes in accounting firms, versus trying to use your local or a regional bank.
Here are 3 reasons why we suggest this.
Reason #1 is the lenders we refer you to have an appetite for accounting practice acquisitions loans. They like cash flow based businesses like your accounting or CPA firm, and often have a dedicated staff of underwriters and credit people that understand accounting firms and their unique cash requirements. Most local or regional banks don’t have this type of dedicated staff.
Reason #2 is the lenders we refer you to have a history of approving and closing these types of loans. This is not their first rodeo as they say, and their history and experience in this accounting firm vertical saves you time as a borrower (meaning days if not weeks) and helps you start your transition plan with the seller, sooner rather than later.
Reason #3 is the lenders we refer you to will not lead you on like a local lender or your local bank, who may have never approved and closed an accounting practice acquisition loan but will initially tell you they can, only to change their mind weeks or a month into your borrowing process. This wastes your time and can potentially scare off the seller of the firm you’re trying to acquire, especially if you have to tell the seller you’ve run into a ‘financing roadblock’ and have to start over.
For more information or if you have a question about financing an accounting practice acquisition, click the link to our Contact Us page. https://acctsales.com/contact-us/
There you can click the Financing option and ask your question.
Or if you’re looking to acquire your first or next accounting practice and have a general question on the process, leave me a comment or send me an email at: jeff@acctsales.com and I’ll answer it for you.
Jeff Bell – ABA Advisors, LLC