partner

why due diligence is done

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businessman sitting in office and reading documentsand the five steps you can’t skip.

by r. peter fontaine
newgate law

few cpas enjoy the due diligence part of a merger. it’s like proofreading legal agreements or checking the answers to a test before handing it into the teacher. it’s not very exciting.

more on mergers: how to merge sole practitioners | 13 questions between merger equals | 18 concerns about merging in smaller firms | what to expect when merging up | 16 reasons merging up causes anxiety | 14 provisions to include in a letter of intent | want to merge? ask for data | the merger process in 21 steps | 13 ways to screw up a merger | 13 reasons accounting firms merge

by the time due diligence begins, the parties have usually decided they want to come together and due diligence is viewed as a process to confirm a decision which, for the most part, has already been made.
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partner pay: open vs. closed compensation systems

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businessman ogling money over another's shoulderboth have advantages.

by marc rosenberg
partner comp: art & science

“if people are concerned about their absolute level of compensation, then they can be satisfied. however, if their focus is on relative standing, then they can never be satisfied.”

– andrew grove, former chairman, intel

an open compensation system is one in which all partners know the earnings of all partners.

more on partner compensation: 5 other systems for paying partners | 3 non-performance-based comp systems | 3 subjective compensation systems | partner compensation 101 | how partners view compensation: it’s not all about the money | why most partner comp systems are performance-based

a closed system is one in which a limited number of partners are privy to this information. in closed systems, the only partners with access to all partners’ income are usually the managing partner, the compensation committee and/or the executive committee.
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what makes a successful strategic plan?

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cute furry monsterfacing the monster issues.

by august aquila
creating the effective partnership

during the next several months, firms will be meeting to develop a strategic plan for the coming year or two. it’s a summer ritual for many firms.

more for pro members: 24 points for after the deal is done | innovate or die | 3 ways to halt a poor leader | partners love, hate leadership | 8 questions that staff ask in a merger | the 4 best ways to use your senior partners | 11 steps to building a better partnership team

however, the plans that are usually developed don’t address the real issues that firms are facing.

a client recently asked me, “what can we do to develop an effective strategic plan?” i’m not sure if he liked the answer or not. i am still waiting to hear if my proposal was accepted. let me share with you what i said to him.

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