do it wrong and your firm could lose a pile of money.
by marc rosenberg
retirements & buyouts
partners have a natural tendency to view the firm’s partner retirement plan as a personal savings plan, but that’s not how these plans work. cpa firm retirement plans are quite different. read more →
and 17 ways to repel one.
after more than 20 years as a business adviser to cpa firms, marc rosenberg has seen his share of cpa firm mergers. each one is a little like a romance. there are turn-ons and turn-offs. every deal is different, but rosenberg says there are 15 rules of attraction (and 17 for repulsion) that apply to all types of mergers: read more →
apparently, they’re worth it.
by marc rosenberg
retirements & buyouts
an ample supply of willing buyers is a critical factor that strengthens and confirms the value of any asset, let alone a cpa firm. virtually every firm, from sole practitioners to the top 100, is eager to acquire a smaller firm. why is this? read more →
ask the “right” questions. ask tough questions.
by marc rosenberg
cpa firm mergers
you likely waited a long time to find the right merger partner. be patient and do things right. fourteen things, to be exact: read more →
look at the revenue stream. goodwill is another story.
by marc rosenberg
retirements & buyouts
to illustrate a cpa firm’s value, let’s use an example of a plain-vanilla or average firm:
now, let’s compute the value.
if they had it all to do over again…
by marc rosenberg
cpa firm mergers
as you might suspect, in 20 years of consulting to cpa firms, several dozen mergers of my clients have taken place.
from time to time, i meet with the managing partner of the firm that was my client and ask them how the merger went, what they would do differently and what advice they would give to firms contemplating a merger.
here are some choice morsels… read more →
developing successful strategies for changing expectations.
by marc rosenberg
cpa firm retirements & buyouts
the concept of retirement for cpas is rather amusing.
younger partners (say, under 40) insist with unshakable confidence that the oldest they will ever work is 50 or 55. they have other things to do with their lives (own another business, do charity work, pursue hobbies, etc.) besides working at a cpa firm and they want to pursue these interests while still young.
older partners (say, over 55) see themselves working indefinitely, with 65 being the earliest age that they will even consider retiring. read more →
with four steps and a sample letter.
by marc rosenberg
cpa firm mergers
in all areas of mergers and acquisitions, it’s always much more difficult to find sellers than buyers. this is certainly true in the case of cpa firms. cpa firm merger consultants and brokers can do a great job finding buyers, but they are limited in their ability to dig up sellers. this is because the vast majority of all mergers and sales take place when buyers or sellers who “know each other” get together on their own without the help of a consultant.
one way to identify sellers is to conduct a snail mail solicitation. the steps in the process are: read more →
veteran buyers say that for every firm they merge with, they had discussions with 10 others.
by marc rosenberg
cpa firm mergers
firms that are serious about merging in smaller firms on a regular basis understand that conducting mergers is all about planting seeds.
a buyer has to have this attitude:
every day of every year, at least one firm decides to test the merger waters. if our efforts to identify sellers are made continuously throughout the year, every year, sooner or later, we will find at least one interested merger candidate and probably more than one. read more →
checklist: for every step in the merger negotiations, there’s a possible misstep.
by marc rosenberg
cpa firm mergers
it’s important to understand the flow of the entire merger process.
every merger has its unique aspects. it’s impossible to choreograph, from a to z, exactly how the process for all mergers will work. most steps occur in the same order from one deal to the next. but then, all mergers are different. your mileage may vary.
still, there are at least 21 steps that need to happen. and one can’t happen without the other. take a look…
and 13 potential sticking points with conflicting agendas.
by marc rosenberg
cpa firm mergers
whether you’re looking to acquire a smaller firm, merge upward into a larger one or join forces with an equal, answering this basic question honestly and objectively is key to laying the groundwork for a successful merger. read more →
prepare for the unexpected.
by marc rosenberg
cpa firm mergers
potential deal breakers in a merger negotiation can crop up at any time – and unexpectedly. but here are 15 that seem to occur more often than others. in most cases, one firm wants something, the other firm doesn’t and the two can’t agree on how to resolve the conflict. be prepared. read more →
with 5 specifics on price and 5 on compensation.
by marc rosenberg
cpa firm mergers
there can be an almost unlimited number of terms that both sides in a merger of accounting firms can haggle over. and sometimes they do.
more on cpa firm firm mergers: do cpa firm mergers really work? | 6 steps to handle staffing problems in a merger | 13 ways cpa firm mergers can go wrong | nuances and idiosyncrasies: the top 12 issues that complicate mergers | talking merger? the basic 7-item agenda for the first meeting | 10 special implementation issues in a merger of equals | in merger talks: 13 essential questions small firms must ask larger firms
but these days, only 15 really matter. get past these 15 and you’re on track to close a reasonable deal. still, be warned: the devil’s in the details. read more →