partner

one times fees is a steal!

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12909723_sthe math might surprise you. 

by marc rosenberg
cpa firm mergers: your complete guide

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 “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 this one-times-fees notion in the back of their minds. 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.

more on mergers: the merger process in 21 steps | plant seeds to turn up merger candidates | looking to grow your firm? how to find a seller in four steps | 13 ways to screw up a merger | 15 can’t-skip merger terms to decide | 14 keys to a successful merger | 13 reasons accounting firms merge | mergers 101: when negotiations aren’t really negotiations | 5 steps to take before merging

the purpose of this chapter is to demonstrate that buying a small firm for one times fees is a steal (for the buyer). in fact, it’s still an outstanding investment at a premium price, say, as high as 1.3 times fees. let me illustrate.

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why your firm should be a republic

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dictatorship, democracy have their weaknesses.

by auqust aquila
creating the effective partnership

what checks and balances exist in your firm to keep it strong but also to protect the minority interest?

more on leadership for pro members: 5 questions about your firm’s direction | 6 reasons to keep partners from retiring | 6 reasons why cpa firms fail in innovation | 6 steps to handle staffing problems in a merger | 7 signs your firm is headed for an implosion | it’s not always about money: 16 tweaks for your comp system | eight key goal areas for partners | like herding cats: partners must ‘walk together’ | managing partners must remember partners’ needs | new times call for new cpa firm metrics | partners have love-hate relationship with leadership | 6 things leaders must do | 8 financial ducks to line up now | partnership is about persuasion

maybe it’s time for more firms to consider a republic instead of a so-called democracy. the larger firms in the country are surely run more like a republic than a democracy. smaller firms would be well advised to change their governance to mirror the larger firms. but let’s start with the dictatorial form of governance – commonly found, sometimes wildly successful, but only to a point.

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the merger process in 21 steps

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numbered bleacher stairsplus: 15 potential deal breakers and non-negotiables.

by marc rosenberg
cpa firm mergers: your complete guide

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. the steps in the process listed below appear in the order of how they commonly occur.

more on mergers: plant seeds to turn up merger candidates | looking to grow your firm? how to find a seller in four steps | 13 ways to screw up a merger | 15 can’t-skip merger terms to decide | 14 keys to a successful merger | 13 reasons accounting firms merge | mergers 101: when negotiations aren’t really negotiations | 5 steps to take before merging

but again, because all mergers are different, the flow of the steps might vary from merger to merger.

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