Many Firms Have Already Lost the Battle with Succession

Older businessman sitting at desk smiling as wall clock indicates 5 minutes to retirementDoomed by outdated retirement formulas.

By Carl George
The Rosenberg MAP Survey

Firms are continuing to struggle with succession of the partner group exiting the profession.

MORE FROM THE SURVEY: Recruiting and Retention Are Challenges | Technology Will Solve Labor Shortages | Cybersecurity Grows in Importance | Don’t Just Win Work, Figure Out Why | Mergers Keep Racing Forward  | MAP Survey Top 10 Findings
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While I would hope these issues are being resolved, I really wonder if it’s not too late for many.
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Strategic Plans Undermined by Out-of-Control Partners

2016-ROUNDTABLE-OUTLOOK-FOR-ROSENBERG-MAP-COMMENTARY-VF-240x219Too many firms are waiting to make plans.

They say "past results are no indication of future performance." Maybe. Maybe not. But if anyone should know, it's our panel of experts, their comments are drawn from the new edition of The Rosenberg MAP Survey. In this installment, the former CEO of Clifton Gunderson says too many firms are falling short of their own goals because of mis-managed partner teams. He doesn't exactly blame it on greed. But we can. – Rick Telberg, CPA Trendlines CEO

By Carl George
Carl George Advisory

Lessons from 2015:

Succession remains an issue as the Baby Boomers are leaving the profession. I see many firms that have waited too long for succession planning, and, of course, the owners have aged. I call it the “clip the coupon for one more year syndrome”! The problem arises when that one year becomes three years, five years and longer.

More on the  2016 Outlook & Forecast: Growth, Succession Plans Critical for Firms | CPA Firm Growth Rates Hit a Wall  |  The Five Treacherous Factors Hobbling Today’s CPA Firm  |  Sam Allred: Change Agents Needed  |  Allan Koltin on Talent Wars Go from White Gloves to Boxing Gloves  |  Get the full report: The Rosenberg Map Survey

Without the next tier of leadership and ownership, some firms become very vulnerable, and they have to look at alternatives like merging up. Firms in this position oftentimes see the firm value declining as “buyer” firms may view them as high-risk firms.

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