This checklist is designed to guide you through the process of selling your CPA practice. The goal is to sell your practice to a qualified buyer. Each point may be adjusted or expanded to fit your practice and the intended buyer.

1. Preparation Phase

·         ☐ Set a target sale date.

·         ☐ Get a professional valuation of your practice.

·         ☐ Ensure financial statements are current and accurate.

·         ☐ Update and organize client lists (remove inactive accounts).

·         ☐ Document key processes and workflows for the services you render.

·         ☐ Review and resolve any outstanding legal or compliance issues.

·         ☐ Gather all essential documentation (engagement letters, lease agreements, insurance, staff contracts, recent peer review, etc.).

·         ☐ Consult with legal and tax advisors regarding sale planning.

2. Marketing the Practice

·         ☐ Choose a sale method (e.g., broker, listing, private outreach).

·         ☐ Develop a Practice Profile (client mix, revenue history, staff info, software used).

·         ☐ Confidentially market the practice to qualified buyers.

·         ☐ Screen buyers for credentials, financing ability, and strategic fit.

3. Negotiation & Due Diligence

·         ☐ Sign NDAs with interested buyers.

·         ☐ Decide level of financial detail you intend to provide.

·         ☐ Provide requested documentation for due diligence.

·         ☐ Negotiate sale price, structure (e.g., upfront + earn-out), and retention guarantees.

·         ☐ Work with legal counsel to draft the purchase agreement.

·         ☐ Establish staff and client transition plan.

·         ☐ Negotiate allocation of purchase price.

·         ☐ Negotiate financing terms if applicable.

·         ☐ Determine tax impacts.

·         ☐ Negotiate how much time you will include and the fee for additional time requested.

4. Deal Closing

·         ☐ Execute the purchase agreement.

·         ☐ Inform staff and clients at the appropriate time (consider level of personal outreach).

·         ☐ Begin transferring client data, files, and technology systems.

·         ☐ Coordinate licensing and firm registration changes if needed.

·         ☐ Finalize sale proceeds planning with your tax advisor.

5. Post-Sale Transition

·         ☐ Assist with client retention during the transition period.

·         ☐ Provide training and support to the buyer as agreed.

·         ☐ Complete client introductions and ensure continuity of service.

·         ☐ Wrap up final legal, tax, and administrative responsibilities.