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Mergers vs. Clients: Winners and Losers

As firms pursue M&A at any cost, who’s taking care of the clients?

2008-2017: Two years of slowdowns in organic growth rates signal a bevy of underlying problems. (Rosenberg Survey)

By Rick Telberg
Rosenberg Survey

Golden and Loerzel: Problems in merger strategies

The many challenges tax and accounting firms face today can be daunting:

  • Accelerating changes in technology (now reaching beyond blockchain to the frontiers of artificial intelligence)
  • Staffing shortages (not just a rarity of professionals but too few up to speed on regs and tech)
  • A new generation (young professionals who expect flex time, time off, telecommuting, fewer hours, and similar perks and benefits)
  • An old generation (baby boomer partners working more years but getting older nonetheless)
  • Increased competition crossed with ever-evolving marketing media (a battlefield unknown to people trained only in accountancy)
  • The evolution of auditing (or is it an ongoing revolution?)
  • New client opportunities (maximizing potential of niches, IT service, consultation, etc.)

Practitioners in firms large and small are doing their best to meet the challenges, but meeting challenges can divert energy and effort from actually growing a business.

And merger mania may be to blame.