Organic growth drops under 5% while mergers surge to 30% of new revenue per firm.
By CPA Trendlines
Annual MAP Survey
The new 2015-2016 annual MAP survey presents news both good and bad—and more of the latter than the former.
- The good news: CPA firms revenues and profits increased last year.
- The bad news: The increase in revenues was less than in the previous year, a lot of it was only due to mergers, and growth was lowest for the smallest firms. And the increase in Income per Equity Partner was especially sluggish.
Most worrisome was the finding that organic growth— which is to say real growth not generated artificially by mergers—was actually a bit lower than in 2013, dropping from 5.2 percent to 4.7 percent, according to the new Rosenberg MAP Survey, available exclusively from CPA Trendlines.
More on the 2016 Outlook & Forecast: CPA Firm Growth Rates Hit a Wall | The Five Treacherous Factors Hobbling Today’s CPA Firm | Sam Allred: Change Agents Needed | Tamera Loerzl on Growth, Succession Plans Critical for Firms | Allan Koltin on Talent Wars Go from White Gloves to Boxing Gloves | Get the full report: The Rosenberg Map Survey
Is this really The End of The Golden Age for the profession?