Tax Implications for Boutique Professional Service Firms During Acquisitions
Acquiring or merging with other businesses is a strategic decision that requires careful financial and tax planning.
Exit
Why Every Professional Service Firm Needs a Buy-Sell Agreement
Whether you’re the co-founder of a consulting firm, a marketing agency, a software development firm, or another type of service firm, the common denominator for ensuring long-term harmony and clarity in ownership matters is a well-drafted buy-sell agreement.
Choosing the Right Attorney When Selling Your Firm: A Guide from Collective 54
Selling a boutique professional service firm is a significant endeavor, and having the right attorney by your side can make all the difference in ensuring a smooth and successful transaction.
Preparing to Sell Your Firm and Make a Successful Exit
Preparing to sell your firm is an extensive process. Discover how to form relationships that set you up for a successful exit.
Waiting too Long to Sell
Take a closer look at the environmental factors and relationships that impact the sale of your firm.
Knowing When to Leave: The Founder’s Role in a Professional Service Firm
The early launch days of a professional service firm are often characterized by the visionary leadership of its founder.
Episode 111 – The Beginner’s Guide to the QOE (Quality of Earnings) Report – Member Case by Elliott Holland
Someday you will sell your firm. Afterall, none of us can run our firms from the afterlife. When your time to exit comes, you will need to know what your firm is worth. The tool often used to calculate a purchase price is called a QOE, or the quality of earnings report. On this episode, QOE expert Elliott Holland, Founder & CEO at Guardian Due Diligence, will help founders understand what a QOE is, when it is needed, who creates one, how it gets used, and why founders need to get familiar with it.
Episode 110 – How a Software Development Firm Structured an Equity Incentive for a Key Employee – Member Case by Michael Daoud
Hiring, or promoting, a person into an executive role often requires the Founder to offer an equity incentive to the key employee. This requirement drives a need to understand what the firm is worth today, and how much of the future value should be shared with the key employee. On this episode, Michael Daoud, CEO at Visus LLC, discusses how he valued his firm, and how he structured the equity share with the key employee.
Episode 109 – How To Avoid The Devastating Fall Out Of a Botched Reorganization Inside of a Professional Service Firm – Member Case by Mike Desjardins
The design of your boutique’s organization can either aid or hurt a successful exit. Any astute buyer will factor this into their decision-making. This is why simple integrations are attractive. They are cheap, quick, and have a high success rate. On this episode, Mike Desjardins, CEO at ViRTUS, shares their firm’s best practices for a successful reorganization, including the much-awaited backstory of how his team redesigned key roles to keep their top individual contributors.
Episode 108 – How a Brilliant Founder Expanded Margins By Repositioning His Software Development Shop Into A Strategic Consulting Firm – Member Case by Phil Alves
The quality of the fees earned by your firm is a top priority as you scale and exit. All revenue is not good revenue. Poor fee quality leads to poor margins. On this episode, Phil Alves, CEO at DevSquad, shares how he improved margins and fee quality by repositioning his firm.