What to negotiate, plus key operating and financial issues.
By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide
The approach to orchestrating a merger differs depending on the nature of the transaction. Is there a true survivor? In substance, not form, is the deal more an acquisition than a true merger?
MORE: 23 Questions for Mergers of Equals | 61 Things Buyers Should Explore with Sellers | Thirteen Ways to Woo Potential Firm Buyers | One Times Fees Isn’t the Only Way | Four Reasons to Fear a Merger
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When a sole practitioner is the seller, virtually all deals are true acquisitions. Solos intend to retire in just a few years. Their primary focus is on the negotiation of financial terms, such as the purchase price, payout term, down payment and compensation for the time they work. Issues related to the operation of the buyer are generally of minor importance to the solo. In other words, when a buyer acquires a retirement-minded solo, the transaction is fairly simple and straightforward.
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