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Source: Journal of Accountancy
Eighty-nine percent of the top 100 firms plan to increase business valuation volume. Here are some tips for increasing yours:
- Experience valuing businesses in a niche (e.g.,construction, restaurants, retail) is provides a potential competitive advantage. Review your history to document your experience for use in marketing to referral sources. Use the information to differentiate your firm.
- Since business valuations are often a one-time engagements, use referral sources to turn them into annuities.
- Referral sources vary depending on the kind of valuation:
- Damage calculations are referred by attorneys (litigation and corporate) and insurance companies.
- Valuations in divorce cases are referred by divorce attorneys and mediators.
- Valuations for estate and gift tax are referred by trust officers, estate planning attorneys, investment advisors, and insurance consultants.
- Valuations for ESOPs, are referred by trust officers, other CPAs, and business owners.
- Valuations in goodwill impairment cases are referred by CFOs and other CPAs.
- Valuations in intellectual property cases are referred by CFOs, corporate attorneys, and other CPAs.
- Valuations for merger/acquisition purposes are referred by business owners.
- The best way to get new business is by personal meetings with the referral sources. It is the only way to develop trust. Attend trade association meetings, deliver proposals in person, ask referral sources to join you in making presentations or writing articles.
- Cross selling within your firm takes a special effort. Meetings and in-house seminars to update partners and staff on your capabilities can be powerful.
- Any marketing initiative must pass a practicality test, such as “will it make the phone ring?” Action steps should be very simple and measurable, e.g., having lunch with referral sources twice a week.
- Spend at least two percent of firm revenues on marketing activities. Increasing it to three percent to five percent or more in the future is reasonable.
- Use newsletters either printed or e-mail to demonstrate expertise. Newsletters that include business valuation subjects focused on industry niches is very effective.
- Include the newsletters, planned partner speeches, and article publications on your Web site. Also include information on how to select a business appraiser.
- Your partners should offer to make presentations at trade association meetings and business valuation seminars. Teaching courses is also effective in developing your reputation.
- Advertising must be frequent. Select appropriate trade and business publications read by those who might become referrers.
- Put on seminars for referrers and offer CLE or CPE.
From Journal of Accountancy, November 2005. For the complete article, click on the following link: http://www.aicpa.org/pubs/jofa/nov2005/price.htm. |
