mergers & acquisitions

will new taxes push you to cash out?

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it might be time to implement plan b.

by domenick j. esposito
8 steps to great

the new administration faces global uncertainties. biden officials have set the stage for higher corporate and individual tax increases.

more from dom esposito:  keep your firm from biting the dust | the six ingredients for firm value | four ways to add $100,000 in new business fees every year | eight steps to small firm survival | no partner candidates? whose fault is that? | prune your firm: ‘rightsize’ managers and partners | how partners fail | ineffective management is hazardous to your firm’s health | profitability requires discipline |

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at the same time, if your midsized cpa firm has not at least started to move away from a general “compliance shop” to either:

  • a specialized niche firm that has established a brand in the marketplace that transcends size and locations, or
  • a professional services firm that provides advisory/consulting, accounting, tax and assurance services to marquee clients in specialized industries,

its worth or valuation in the marketplace continues to diminish from the historical one times revenue payable upon individual partner retirements over 10 to 12 years.

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the managing partner’s role in mergers

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17 key factors and 18 common turnoffs. bonus: an 8-point history of cpa firm mergers.

by marc rosenberg
the role of the managing partner

we have discussed how the managing partner impacts organic growth activities. but a major growth strategy was not addressed: mergers and acquisitions, or more precisely, how managing partners impact m&a at their firms.

more: 10 ways to hold partners accountable | five ways to evaluate partners | manage partners with goal setting | overarching authority that managing partners must have
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when managing partners are asked what their revenue growth is, they invariably respond something like this: “we grew 12 percent last year, 8 percent organically and 4 percent through mergers.” it’s almost like the 4 percent from mergers didn’t count. but this is changing.
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bigger firm, bigger thinking

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businessman reading and reclining on part of red arrow trending upwardseven steps for newly formed midsize firms.

by steven e. sacks
the new fundamentals

there has been talk about consolidation within the accounting profession for the last several years. will the big 4 become the big 2, or will there be the big one?

more: can a cpa firm be different in a changing market? | deadlines? ha! don’t make me laugh | organizational change starts and ends with people | busyness isn’t the same as productivity | staff orientation: a little investment goes a long way
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or, on the other hand, will there be a combination of regional firms whose size will be in the neighborhood of the top 10 or top 15 firms that are considered super-regional firms – and who may consider themselves direct competitors to the big 4?
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covid-19 shakes up m&a activity

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arrow rising above ever larger blocks in businessman's hand, indicating growthwant to grow? make sure your tech stack can keep up.

by terry putney

we are in a fluid environment as firms adapt and learn more about what to expect. i think earlier this year there was hope that we would emerge from this economic environment by the end of 2020. it looks now like this could definitely have an impact through 2021.

more: 2021: you’ll never see ‘normal’ again | survey: we adapted to remote work … now what? | survey: 2020’s disruptions are only the beginning | covid brought us more and better client communication
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it is a mixed bag so far for m&a. some firms have pulled back and i suspect that is because, although this may not make sense logically, it may be hard to internally sell buying a firm and hiring more staff when the firm is laying off people and cutting back on partner draws. however, we are also seeing very motivated buyers and sellers because of the opportunities that appear to be available. one thing that can’t be avoided is the difficulty of negotiating and evaluating targets when you can’t meet face to face regularly.
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before you sell your practice

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older couple on autumn walk with trees in backgrounda broker is an option, but you have things to decide first.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

question: we are contemplating selling our firm. it’s a difficult decision due to the financial rewards and the enjoyment we get from our work. i am 63 and my wife-partner is 62 and we are not in a hurry.

more: price your practice by gross | an alternative to pro bono | work the client needs … but won’t pay for | tossing timesheets is just the start | collect more by clearing up billing | envision your future, then plan for it | 5 ways to build teamwork
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

we would like to sell to a cpa who would be very committed to this business and our clients, many of whom have been with us for over 20 years. how should we start?
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price your practice by gross

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price targetbonus checklist: 11 questions to make sure you’re comparing apples to apples.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

question: everyone i talk to about what my practice is worth talks about a percentage or multiple of gross. just what is “gross” and why is it done this way?

more: an alternative to pro bono | work the client needs … but won’t pay for | tossing timesheets is just the start | collect more by clearing up billing | 5 ways to build teamwork
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

answer: you are right that practices are priced based on gross. the main reason is that this method seems to work well. however, there is a wide range of what gross is and how it is applied.
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replay: covid impact on cpa firm m&a

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m&a maven robert fligel says coronavirus is pushing deal-flow and trimming multiples.

^ click to play the video

featuring robert fligel
rf resources

covid-19 is putting new pressure on cpa firms to close merger deals, even if it means taking a haircut in the selling price, says robert fligel, the legendary new york-based cpa firm mergers-and-acquisitions dealmaker, in a new 卡塔尔世界杯常规比赛时间 flash briefing.

in this replay of the live web event, a fast-paced 30-minute webinar update, fligel covers:

  • the current state of the m&a market,
  • best practices for sellers, and
  • pitfalls for buyers and sellers

^ listen to the podcast

bonus downloads:

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the morning after the merger

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//m.g005e.com/2020/09/17/the-morning-after-the-merger/the definitive 24-point checklist.

by august j. aquila

you just signed the merger agreement and everyone goes out to celebrate. the work is over and now you think you can relax.

more: 6 action steps for a smooth retirement transition | 7 succession planning best practices | grissom and aquila on partner performance evaluations | gross profit in a professional services firm: opening a dialogue
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what else is there to worry about?

plenty!

you now have to move your eye from the financial to the human side of the merger.

your work in this area has just begun and may last for 12 months or more.
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covid drives new m&a trends

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buyers find good deals as baby boomers head for the exits.

by joseph tarasco
accountants advisory group

as the economic recession and health concerns in our nation are at a pivotal point and closely linked in a “perfect storm,” strategy-oriented cpa firm leaders will take more of a holistic approach to manage and lead their firms.

more on m&a: m&a surges ahead despite covid crisis | new rules: covid shifts m&a landscape | merging in sellers: what you need to know | how to start (or re-start) your own accounting firm | five keys to successfully selling a cpa firm | mergers: what could go wrong? | 10 questions to ask yourself before buying an accounting practice

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

coming to terms with the recession and health risks, leaders must not only focus on the current and immediate issues affecting their firms but now they must also plan for the near and long-term future “new model.”

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why so many m&as fall short

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three office workers glaring at cameraplus: the 3 prongs of culture and why they matter.

by domenick j. esposito
8 steps to great

principally because of the “post covid-19 blues” and anticipated difficulty in growing organically at an acceptable rate and because of the ever-increasing number of baby boomer retirements, there is a sense that small and mid-sized firms will continue to merge at a healthy pace.

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

to illustrate, in just the past few weeks, we learned that anders cpas + advisors picked up cummings, ristau & associates (both of st. louis), adams, brown, beran & ball chtd (great bend, kansas) added jonesboro, arkansas office of egp pllc and hancock askew & co. (georgia and flordia) acquired capa (miami). these are noteworthy transactions and we believe that there are more to come.
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the covid outlook: a long, slow climb back to recovery

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why right networks’ acquisition of rootworks may be just what the doctor ordered

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with rick telberg
卡塔尔世界杯常规比赛时间

the accounting world shifted a little with the acquisition by right networks, a cloud-hosting vendor, of rootworks, a technology platform provider to cpa firms.

though conceived before the pandemic, the deal was closed as the first wave of coronavirus was crashing against the shores of the u.s. and it may be a sign of the times under pandemic conditions, as accountants — and, indeed, business in general — race for new technology solutions and business models.

see: right networks acquires rootworks

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

in this exclusive interview with 卡塔尔世界杯常规比赛时间, right networks ceo joel hughes and rootworks founder darren root, explain the reasons for the deal, and their forecast for the future under covid. warning: their forecast for the future under covid is not pretty.

but the combination of the two companies may augur hold clues to the future of the profession.

transcript

here’s the full transcript, only lightly edited:

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m&a surges ahead despite covid crisis

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//m.g005e.com/2020/06/10/ma-surges-ahead-despite-covid-crisis/but key trends, logistics, and legalities are changing.

by r. peter fontaine

given the enormous disruptive effect of the covid-19 crisis, it is surprising that mergers and acquisitions are still very much near the top of the accounting firm agenda.

more on cpa firm m&a: new rules: covid shifts m&a landscape | merging in sellers: what you need to know | five keys to successfully selling a cpa firm | mergers: what could go wrong? | 10 questions to ask yourself before buying an accounting practice | buyers name 20 big merger turnoffs | why firms merge: hint, it’s not for the clients | five key decisions for your exit strategy

coronavirus crisis updates: start here for a guide to all our coverage.

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

in a word, sellers want to sell – and – buyers want to buy. we will examine the reasons we have seen that contribute to the continued strength of acquisitions; as well as the changes and challenges confronting buyers and sellers in a covid world. read more →

new rules: covid shifts m&a landscape

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checklists: top 10 tips for buyers and sellers.

by ira rosenbloom

many cpa firms go into merger conversations thinking that, because they have done deals before, they can do what they’ve done in the past. but in this covid-impacted economy, the tolerance for risk is low—and changing day-to-day.

more ira rosenbloom: seven smart ways to make this your best tax season ever | eight steps for re-engineering the role of managing partner | ten steps to a better tax season | feeling the urge to merge? first, consider the angles

coronavirus crisis updates: start here for a guide to all our coverage.

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

we’re seeing every day how much the pandemic can impair and alter both daily life and business fundamentals, so the more efficient you can be in getting ready for a merger, the better. these days, you need to move fast or risk losing out.

here are some recommendations crucial for getting both buyers and sellers properly prepared for their next step in m&a negotiation.

read more →