Articles

by Ron Buck

Your existing accountant is your first choice if they are experienced in transactions of this nature.  If not, ask them for recommendations as they will still be an integral part of the transaction going forward (particularly in providing historical financials and updates).

There are several things that you should look for when considering which accountant to work with:  if you are a buyer and are considering a 401k rollover to fund part of the purchase price, they should know what types of existing retirement accounts qualify (e.g., you do not have to currently have to have a 401k); if you are a seller, when calculating your tax liability, they should provide a calculation (with scenarios) versus a back of the envelope analysis; if you are a c-corp, they should be familiar with “personal goodwill” and know how and when to apply it; if you have contractual relationships that can’t be broken, familiarity with a 338(h)(10) election can be important; finally, they should be familiar with the part of the tax code that makes seller finance forgiveness a non-taxable event.  In the end, you are looking for a good relationship fit coupled with some specific expertise that may be needed for your transaction.