It might be time to implement Plan B.
By Domenick J. Esposito
8 Steps to Great
The new administration faces global uncertainties. Biden officials have set the stage for higher corporate and individual tax increases.
MORE from DOM ESPOSITO: Keep Your Firm from Biting the Dust | The Six Ingredients for Firm Value | Four Ways to Add $100,000 in New Business Fees Every Year | Eight Steps to Small Firm Survival | No Partner Candidates? Whose Fault Is That? | Prune Your Firm: ‘Rightsize’ Managers and Partners | How Partners Fail | Ineffective Management Is Hazardous to Your Firm’s Health | Profitability Requires Discipline |
At the same time, if your midsized CPA firm has not at least started to move away from a general “compliance shop” to either:
- a specialized niche firm that has established a brand in the marketplace that transcends size and locations, or
- a professional services firm that provides advisory/consulting, accounting, tax and assurance services to marquee clients in specialized industries,
its worth or valuation in the marketplace continues to diminish from the historical one times revenue payable upon individual partner retirements over 10 to 12 years.