Be clear about their client base.
By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide
It’s fairly common for law firms to hire partners from other firms, a practice termed “lateral partner hires.” CPA firms do this but much less often.
MORE: Where Mergers Go Wrong | Twelve Tips for Negotiating Mergers | Buying a Solo | Why Merging in Smaller Firms Is Fabulous 13 Reasons to Merge Up | Thinking Merger? First Ask Why.
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The main reason for this difference is that law firms cannot legally have nonsolicitation or noncompete covenants in their partner agreements. Most CPA firms do have such provisions, which severely restrict the movement of partners from firm to firm.
Despite these nonsolicitation provisions, CPA firms do sometimes make lateral partner hires (LPs). There are several variations:
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