Time Is Running Out for Succession Planning

BONUS: 22-point M&A due diligence kit.

By Domenick J. Esposito
8 Steps to Great

Much has been written and discussed regarding succession planning at CPA firms driven by the vast number of founders, leaders, and rainmakers who are retiring at a record pace.

MORE ON STRATEGIC PLANNING: Expand Your National and Global Geographic Reach | Using a High-Performance Business Framework | What a Client Service Plan Can Add | 36 Consulting Services You Might Be Overlooking | How to Drive Consistent Partner Behavior | CPA Firm Partner Performance: Different Activities, Different Metrics | Develop the Partners You Already Have | How Many Partners Do You Need?
Exclusively for PRO Members. Log in here or upgrade to PRO today.

Key takeaways in this post:

Mid-market sustainable brands generally combine practices as opposed to acquiring or buying practices.
Spend time to make sure it feels right.
The easier part is getting the contract signed; the harder part is the integration of the two practices and to make sure 1 + 1 at least = 3.

Posted on December 22, 2016

Dom Esposito

About the Author

Domenick J. Esposito was the CEO of Grant Thornton, vice-chair of BDO, and national growth director at CohnReznick.

He is the author of "8 Steps to Great: The Eight Essential Strategies Driving Success at the World's Largest CPA Firms. And How to Apply the Lessons at Firms of All Sizes," published by CPA Trendlines.

A Life in Public Accounting

In 2016, Esposito, then a former CEO of BDO, moved from a 46-year career in public accounting into the next phase of his professional life – consulting to CPA firms, launching a boutique advisory firm, Esposito CEO2CEO, that provides advice to CEOs, managing partners and other senior partners of CPA firms focused on the mid-market throughout the U.S.

With the launch, Esposito authored “8 Steps to Great," a guide for CEOs, managing partners, and other senior partners on how to move their firm to the next level.

CohnReznick National Growth Director

Esposito was one of the most qualified individuals in the country to advise CPA firms on growth and profitability. Through 2015, he was National Practice & Growth Director and an Executive Board member of CohnReznick, LLP, a mid-market sustainable brand and the tenth-largest CPA firm in the United States. He oversaw CohnReznick’s go-to-market industry specialization and consulting and advisory service lines. He was also intimately involved in the firm’s mergers and acquisitions and strategic and tactical activities for its public company and capital markets initiatives. Dom joined the predecessor firm of J.H. Cohn in 2002 as the Chief Operating Officer and Executive Board member.

Dom was also an independent director of Ethan Allen Interiors Inc. For several years (through 2014), Dom was a member of the NASDAQ Listing and Qualifications Committee to the organization’s Board of Directors. He formerly served as the leader of the New York State Society of CPAs Committee for Large and Medium-Sized Firms Practice Management. He also was an Adjunct Accounting Professor at C.W. Post/Long Island University.

BDO and Grant Thornton

Through October 2002, Dom was Vice Chairman at BDO, a mid-market sustainable brand and the seventh-largest international accounting and consulting firm in the U.S., with almost 50 offices and 3,400 employees. During his brief time with BDO, he was responsible for the Alliance Distribution Network (at the time consisting of over 80 CPA firms, 10 law firms, and 25 consulting firms). He was also responsible for attracting and servicing a number of clients.

From 1979 through 2001, Dom was with Grant Thornton, another mid-market sustainable brand and the sixth-largest international accounting and consulting firm in the U.S., with over 50 offices and 4,500 employees. He joined Grant as an audit manager, became a partner in 1981, led the Long Island Office from 1984 to 1986, became assistant managing partner of the New York Office in 1986, and from 1988 to 1999, led the New York Office. In 1999, Esposito became a regional managing partner and for two years, through 2001, was the firm’s Chief Executive Officer.

CPA, Partner, MBA, Leader, Influencer, Media Celebrity

Between 1996 and 1998, and while he was CEO, Esposito was on the Partner Board and was also on the Board of Grant Thornton International – the worldwide umbrella organization. In these capacities, he developed strong experience in strategic thinking and execution, international relationships, corporate governance, partnership matters, branding, expense control, client relationships, and new business development.

As CEO, he took Grant Thornton to record earnings, consummated the largest line-of-business sale in the firm’s history, developed a major joint venture with AXA Financial, and made the largest practice acquisition in the firm’s history. From 1969 to 1979, Esposito was with Price Waterhouse (now PwC), servicing IBM when he was promoted to manager in 1976.

Dom was a CPA, has been quoted in national and local media, and has appeared on radio and cable TV.

Esposito also testified before the Securities and Exchange Commission.

He received his M.B.A. from St. John’s University and his B.S. from Ferris State University. AccountingToday, one of the leading trade journals for the accounting profession, named Esposito one of the most influential people in the profession for two consecutive years.

He passed away in 2021 at the age of 74.

Click here for more by Dom Esposito

TO READ THE FULL ARTICLE

Continue reading your article with a CPA Trendlines Pro membership.