2019: Using M&A to Launch Consulting

Technology drives hours down 40%; how will your firm cope?

By Terry Putney
The Rosenberg Survey: National Study of CPA Firm Statistics

The market for mergers is clearly moving toward narrow selection criteria for the acquiring side of transactions. Part of this is because of the increasing numbers of firms seeking to be acquired that are available. However, acquiring firms are also much more strategic with their objectives for an acquisition.

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Strong organic growth means pure revenue acquisition is not enough anymore. Firms with a need for a near-term succession of a substantial portion of the partner group are finding fewer takers among the larger firms. Firms that can be acquired to help grow and launch non-traditional, non-compliance-oriented service lines are in high demand.

Posted on January 6, 2019

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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