here’s what you’re looking for: marc rosenberg

mergers & acquisitions

do cpa firm mergers really work?

6 metrics to measure success. procrastinators’ 3 myths. and 5 steps you can’t skip.

by marc rosenberg
cpa firm mergers

as a generation of aging baby boomer partners marches towards retirement, thousands of firms are seeking the only exit strategy available to them – merge into another firm. thus has a voracious appetite for mergers been created at all size levels, particularly:

  • sellers who are sole practitioners (remember, 30,000 of the u.s.’s 45,000 aicpa-member firms are solos and a huge percentage of those are at an advanced age) and multipartner firms billing under $2 milllion a year.
  • buyers with annual revenues of $3 milion and more.

do mergers work?

well, that’s what doing a merger successfully is all about – asking the “right” questions.
look at the reasons why the merger was done in the first place and see if those goals were met.

good examples of the “right” questions: read more →

mergers & acquisitions

a startling revelation: 1 times fees is a steal

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do the math and don’t be afraid to pay more or ask for more.

by marc rosenberg, cpa

partners in accounting firms are familiar with the rule of thumb that a cpa firm’s goodwill is worth one times fees; however, like many other “rules of thumb,” this notion is often incorrect.

when buyers begin to think about how much they will pay for a smaller firm, they often have the “1 x fees” concept in mind. then, when sellers are bold enough to ask for a price in excess of one times fees, buyers often balk because they feel that the asking price is too rich.

 

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mergers & acquisitions

talking merger? the basic 7-item agenda for the first meeting

the ultimate success of a merger is directly proportional to the effort made by both firms.

according to marc rosenberg, of cpa firm mergers, each firm must ask lots of questions, agree on as many merger implementation issues as possible before the merger takes place and openly share as much of their “dirty laundry” as possible. “don’t assume anything,” rosenberg says.

in merger talks between well-matched firms of similar size, the best deals seem to start with the right agenda at the first meeting. it’s a seemingly simple seven-item agenda. but the discussions are rarely simple. nor should they be.

agenda for the first meeting: read more →