Get To Know Your Lease Before Selling Your CPA or Accounting Practice

Often the lease can get overlooked but more than likely it is the 2nd largest expense for the business outside of wages. It is an important and significant part of selling the practice.
Here are some tips you should know about your lease:

• Is it transferable?
• Is there a transfer fee?
• Will the landlord allow an extension for the new buyer?
• Will the landlord increase the rent if a new lease is signed?
• How much time ahead does the landlord need to be notified of a new tenant.

Generally speaking, landlords are very accommodating. I mean who wants to turn down money? We have had some instances in the past where the landlords were very quirky. Some wanted to raise fees even with less then full capacity in the building. Some were very difficult to get a hold of and not responsive to messages. You know your landlord the best. All landlords have personality and you as the seller should have an idea of how hard it will be to work with him or her. If you suspect there may be any difficulty, it is best to get it out in the open early. This could save the seller and buyer a lot of headaches down the road.
In accounting practice sales transactions, often times timing is very critical. Try to stay ahead and not let the landlord delay the process. If you know that your landlord may be difficult to deal with, bring it up the idea softly which can help gauge their reaction and soften the blow that you plan on selling.