How Succession Issues Are Driving Desperation Mergers

Millennials, aging partners both skeptical.

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 drawn from the new edition of The Rosenberg MAP Survey. These are their bullet points and comments, verbatim, looking back at the last 12 months and looking ahead to 2016. – Rick Telberg, CEO

By Terry Putney
Transition Advisors

Lessons from 2015:

The issue we are seeing that is most troublesome for firms is their lack of talent that can be developed into future leaders. Often partners want to place blame on the millennials and the different views they have regarding work-life balance.

MORE FROM THE ROSENBERG MAP SURVEY: Outlook 2016: Change Catches Up with Auditors | Strategic Plans Undermined by Out-of-Control Partners | Growth, Succession Plans Critical for Firms | Talent Wars Go from White Gloves to Boxing Gloves | Trend Outlook 2016: Change Agents Needed

However, it is clear many firms have failed to invest in leadership development. So they don’t have enough time to provide succession for retiring partners in their firms.

Posted on November 19, 2015

Terence Putney

About the Author

Terrence E. Putney, CPA, is CEO of Transition Advisors, a mergers-and-and-acquisitions broker for CPA firms. Terry has more than 35 years’ experience in the CPA profession. For six years, he served as Managing Director - Mergers & Acquisitions for RSM McGladrey, the country’s fifth-largest accounting firm and held several executive posts with its corporate parent, H&R Block. At RSM, he structured and negotiated numerous deals resulting in the acquisition of accounting and consulting firms ranging in size from sole proprietors to multi-state firms with hundreds of staff and professionals. Prior to joining McGladrey, he served as Managing Partner of Donnelly Meiners Jordan Kline, a 60-person CPA firm in Kansas City.

Terry believes it’s imperative that practitioners have a clear understanding of their objectives when pursuing a sale of their practice or the merger with, or acquisition of, another practice. “I've seen deals not work or not materialize because one of the parties to the succession plan had not thought through what they really wanted to accomplish. Transition Advisors will make sure the approach to executing your plan will meet your objectives. Because we are consultants and not brokers, we can be much more flexible in helping a firm succeed with its transition plan.”

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