succession & retirement

analysis: is private equity the new source of growth capital for cpa firms?

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eyes wide open: esposito and zecca

the details matter. go in with eyes wide open.

by dom esposito and anthony zecca

from time to time, we hear news in the profession about private equity transactions occurring within the ranks of midsized to larger cpa firms. just recently, eisneramper did such a transaction with towerbrook capital partners.

more on private equity for cpa firms:

exclusive:  ceo charly weinstein explains the private equity deal

flash briefing webinar: a “call to arms” after eisner private equity deal, with dom esposito and anthony zecca

analysis by esposito and zecca: how outside capital can remake cpa firms

eisneramper gets private equity backing

esposito is author of “8 steps to great: driving success at the world’s largest cpa firms and how to apply the lessons at firms of all sizes.” more by  dom esposito here.

zecca is the author of “leading from the edge – the new growth handbook with bonus toolkit.” more by anthony zecca here.

while at first glance, a private equity infusion could appear to be an effective growth and wealth creation vehicle for cpa firms, there are elements of structure, due diligence, and corporate governance to be considered.

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eisneramper gets private equity backing

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charly weinstein on cnbc talking about the private equity deal.

towerbrook capital partners’ infusion “reimagines the traditional accounting firm model.”

by 卡塔尔世界杯常规比赛时间

eisneramper llp – one of the profession’s top 20 firms with more than $420 in annual billings, 200 partners, and 1,200 employees – has sold about half the firm to towerbrook capital partners, a private equity fund with big investments in the financial services sector.

more on private equity for cpa firms:

flash briefing webinar: a “call to arms” after eisner private equity deal, with dom esposito and anthony zecca

analysis by esposito and zecca: how outside capital can remake cpa firms

analysis by esposito and zecca: private equity the new source of growth capital for cpa firms?

eisneramper gets private equity backing

as a result, eisner is splitting into two entities: the legacy eisneramper llp, a licensed cpa firm, to provide attest services, and the new pe-funded eisner advisory group llc, for business advisory and non-attest services. terms were not disclosed but towerbrook has a reputation for taking controlling interests in the companies it funds. audit and assurance account for about 49 percent of eisner’s pre-deal billings, with 42 percent from tax and 9 percent in consulting.

“it will be a positive disruptor in the profession,” according to charly weinstein, eisneramper ceo.  “rather than conforming to traditional frameworks, adopting a new model of ownership facilitates the best structure for the firm to drive growth and innovative solutions to our clients. our colleagues will be able to chart a course for success in our purpose-built practice structure.”

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how to put the ‘success’ in succession

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“the optimal approach for transition is to have in place a real-time written, approved succession plan that includes a process for periodically reviewing and updating it.”

by ira rosenbloom

cpa firms are constantly changing. technology advances. legislation gets rewritten. client services are added or removed. and, of course, team members join and leave.

more: how covid-19 has changed succession planning | top 10 steps to maximizing profitability
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with all of the change, the dependence on quality talent to lead and sustain the firm remains. hiring and retaining quality staff members usually ranks as one of the top 10 critical factors firm leaders face when they are asked about challenges.
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how covid changes succession planning

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overhead view of people solving a large jigsaw puzzlelarger firms want to drive scale; smaller firms want more distribution and leverage.

by ira rosenbloom

even as the pandemic rips through the world with horrific tragedy, it is also spawning some new ideas, some critical imperatives, and some unforeseen opportunities, especially in the area of cpa firm succession.

more: top 10 steps to maximizing profitability
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we are witnessing a heightened interest in firms committing sincerely to mergers and other practice combinations, and there is now a shifting business culture that aligns better with internal practice succession than we have seen in a long while.

these shifts in succession potential are largely a function of technology, quality of life, client needs (and demands), and resources.

let’s break it down:

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eisneramper takes on private-equity investor, spins out attest firm

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charly weinstein on cnbc talking about the private equity deal.

towerbrook capital partners’ infusion “reimagines the traditional accounting firm model.”

by 卡塔尔世界杯常规比赛时间

eisneramper llp – one of the profession’s top 20 firms with more than $420 in annual billings, 200 partners, and 1,200 employees – has sold about half the firm to towerbrook capital partners, a private equity fund with big investments in the financial services sector.

as a result, eisner is splitting into two entities: the legacy eisneramper llp, a licensed cpa firm, to provide attest services, and the new pe-funded eisner advisory group llc, for business advisory and non-attest services. terms were not disclosed but towerbrook has a reputation for taking controlling interests in the companies it funds. audit and assurance account for about 49 percent of eisner’s pre-deal billings, with 42 percent from tax and 9 percent in consulting.

“it will be a positive disruptor in the profession,” according to charly weinstein, eisneramper ceo.  “rather than conforming to traditional frameworks, adopting a new model of ownership facilitates the best structure for the firm to drive growth and innovative solutions to our clients. our colleagues will be able to chart a course for success in our purpose-built practice structure.”

read more →

how aging boomers impact the accounting profession

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businessman and the cloud computing conceptyour people are your biggest assets.

by steven e. sacks
the new fundamentals

there are about 80 million baby boomers today, and this cohort of 65 and older is projected by the us census bureau to reach 83.7 million in the year 2050.

more steven sacks: would you buy your own services? | the future of the accounting profession | avoid last-minute deal making | business is about relationships | can a cpa firm be different in a changing market? | a rapidly changing business environment requires flexibility | accounting is a profession, not an industry

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

by 2030, more than 20 percent of u.s. residents are projected to be aged 65 and over, compared with 13 percent in 2010 and 9.8 percent in 1970.

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family feud isn’t just a game show

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jason p. trenton
jason p. trenton: how to avoid family feuds.

why you need an estate administrator pro.

by anthony glomski and russ alan prince
your $5-million high-net-worth practice

being named executor of an estate places many legal and fiduciary responsibilities on that person. an executor is entrusted with settling the decedent’s affairs, arranging for the payment of any income and estate taxes, and distributing the assets of the decedent’s estate. in most cases, people choose a loved one or family member to serve as executor.

more: working with the ultra-wealthy | become a thought leader | working with the super-rich and single-family offices | the family office model | the new way to get the best clients | the four-step process for client-focused business development | life insurance as part of wealth management
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

“unfortunately, i have seen executors neglect their fiduciary duties during the estate administration period, which has exposed the decedent’s estate to unnecessary legal expenses, tax liability, and family feuds,” said jason trenton, a top trust and estate attorney in the los angeles office of venable llp’s tax and wealth planning practice.
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entitled rainmakers and other practice development errors

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can retired partners stay involved? only if it benefits the firm.

by marc rosenberg
the rosenberg practice management library

this post explains the rock-solid link between bringing in business and partner compensation.

more: 13 ways to make the most of your website | five social media do’s and don’ts | is it time to hire a marketing consultant? | how to manage the practice development function | networking for fun and profit | 14 marketing activities needed now more than ever | now is the time to activate your referral network | the 4 marketing disciplines | why you have to kill the old paradigms
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here are the major factors firms consider in compensating partners:

  • bringing in business
  • managing a large client base profitably
  • providing great service to your client base
  • holding management and leadership positions in the firm
  • nurturing and mentoring staff; helping them learn and grow
  • living and breathing the firm’s core values

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the one big reason your hiring sucks

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three partners, one male and two female, walking and smiling outside a buildingand three ways to fix it

by ty hendrickson

it’s said in the profession that employees must earn their place by proving their loyalty to the firm through years of experience.

more: 5 crucial areas of firm culture not to ignore | the cpa firm partner’s role is changing | are you botching your first impression? | maybe the pandemic isn’t all bad | the no. 1 reason accountants fail to build advisory practices | the real problems created in a remote workforce | 4 reasons to welcome rejection
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

that might be one of the biggest lies in our industry right now and the no. 1 reason firms are facing recruiting and retention problems.

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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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don’t let exiting partners double dip

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senior businesswoman in officewhy pay if the firm doesn’t get the clients?

by marc rosenberg
the rosenberg practice management library

here’s a question that frequently arises in my consulting engagements: what are your thoughts on partners wanting to work for the firm in a non-partner role after they retire, who continue to control “their” clients while receiving deferred compensation and a salary for their work?

more: the 13 signs you have a partner problem | covid-19, adversity and innovation | is mandatory retirement a best practice? | merging in sellers: what you need to know | take yoda’s advice on strategic planning | 15 amazing organizational tactics to manage a cpa firm | how to develop a truly progressive nextgen culture
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the answer is rooted in the maxim: “no transition … no goodwill.” this means that retired partners should not have the inalienable right to deferred comp without actively and effectively transitioning their clients. if they don’t transition, then the remaining partners, at their sole discretion, should be able to reduce the deferred comp payments.
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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.

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