Accounting Practice Sales Case Study
Accounting Practice Sales (APS) is recognized as a leading provider of the marketing and sale of accounting and tax practices across the United States and Canada. The company has a network of brokers that assist these businesses in selling or purchasing practices. Accounting Practice Sales, Inc. (APS) was founded by brothers, Gary and Howard Holmes, both experienced CPAs, and is headquartered in Arlington, Texas.
Accounting Practice Sales takes the time to find just the right buyer for each practice. They represent the buyer and seller in a manner that is mutually beneficial by valuing the practice appropriately and assisting the buyer with obtaining appropriate financing.
- Challenge
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APS represents many different types and sizes of practices, and no single type of financing fits every transaction. Small Business Administration (SBA) 7(a) loans are often the right choice, but the application process can be daunting and time consuming. Many organizations offer 7(a) loans, but APS brokers needed a source with SBA expertise that could speed the loan process and close loans quickly, since a timely closure is so often a crucial factor in the selling of a practice.
Above all, what a company like APS needs to bring to the table is consistency. Its clients need to know that APS can work out a win for both parties, and that means finding favorable financing. That presents a challenge for the lenders, too. APS works with many fine lending institutions, and it’s up to those organizations to understand what APS does and what its clients need. They, too, need to provide consistency.
- Solution
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Because APS has so many brokers all over the country, who work independently of each other, CIT had not been fully cognizant of the total amount of business that it had been doing with APS. A few years ago, APS conducted a survey of its brokers to discover which lenders they were working with most frequently, and found that CIT was the first choice of almost every broker. We decided to develop a concerted, dedicated program to originate financing for APS’s brokers. This shortened the turnaround time on almost all transactions, and allowed CIT to provide APS brokers with a better overall experience.
“From this we developed a ‘strategic account’ template that we’ve used for several other concepts, to ensure that they’re dealing with someone who knows their specific needs and can blend in with their operation,” says Peter O’Hern, CIT Vice President and regional sales manager for small businesses.
Through its dedicated program, CIT has gained a more thorough knowledge of the needs of APS and other clients, and has learned to better adjust each loan to the transaction at hand.
“It’s reassuring to know that CIT is the largest SBA lender in the country,” says APS President Gary L. Holmes, CPA, CFP. “Time after time, it seems that CIT has been able to get our loans done better and faster than anyone else.”
- Results
- In 2007, CIT Small Business Lending provided over $16 million in loans to the clients of APS, and continues to work closely with APS brokers to provide a constantly improved lending program. CIT is helping to increase its clients’ efficiencies in loan processing and to increase their annual revenues and market shares.
