MERGERS & ACQUISITIONS

When Selling a Firm to Staffers Is Tricky

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Two writers have similar problems.

By Ed Mendlowitz
202 Questions and Answers: Managing an Accounting Practice

I received two related questions, which I’ll answer together.

First Question: I am nearing retirement and want to sell my practice to two longtime staff people, but they don’t get along, and I’m afraid to sell to them. What should I do?

MORE: Want to Merge? Six Steps to Take | How to Raise Your Rates | Higher Fees to Start: Ten Ways to Make Your Tax Season Better | Three Ways to Start an Accounting Practice | Free Consultation? Not Always | Referral Fee? Forget It | How Much Is Your Tax Practice Worth? | Merge in Lower-Priced Work without Losing Out
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Second Question: I have a large individual tax practice, but also have an audit practice that is handled by different staff in my firm. How do I sell this practice? None of the larger buyers want the tax clients and none of the smaller buyers want the audit clients.

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Want to Merge? Six Steps to Take

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man writing in notebook

BONUS: Key considerations in evaluating a practice continuation agreement.

By Ed Mendlowitz
202 Questions and Answers: Managing an Accounting Practice

Question: What I should do about merging? I need a specific answer.

MORE: How to Raise Your Rates | Courting a Client? Don’t Give Too Much Away for Free | Nine Tips for a Healthier Tax Season | Fifteen Strategies for First-Time Supervisors | Measure Knowledge Gaps (Then Close Them) | Should You Offer Financial Services? | Ready to Retire? Selling Your Practice Is No Strategy | 20 Things You Need for a Business Valuation
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Response: I can’t give you an easy answer. I can give you a process to follow that should provide an answer. Actually, this works pretty well and I’ve gotten good feedback from many colleagues. I’ve also rethought it many times, and still think this is the way to go about it.

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Thirteen Things to Consider Before You Sell Your Practice

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man sitting at desk, staring off thinking

Are you being realistic?

By Ed Mendlowitz
202 Questions and Answers: Managing an Accounting Practice

QUESTION: I am getting older and want to continue working at least five more years. Should I merge now to anticipate and facilitate a buyout?

MORE: How Much Is Your Tax Practice Worth? | Ready to Retire? Selling Your Practice Is No Strategy | Uncooperative Partner Might Not be the Problem | Merge in Lower-Priced Work without Losing Out | 20 Things You Need for a Business Valuation
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RESPONSE: Selling means retiring. Is that something you want to do? I’ve written many times about being clear about your goals and what you really want. That being said, here is a general discussion about the reality of the value of your practice.
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Be the Flywheel to Increase Revenue

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“This will be the largest transfer of wealth the nation has ever seen in such a short period of time.”

By Rory Henry, CFP®, BFA

Henry

Rory Henry is a Director at Arrowroot Family Office and host of the Wealth Management Forward podcast. He can be reached to discuss ways to integrate financial planning into your practice through the CPA Partnership program at (310) 566-5865 or at rory@arrowrootfamilyoffice.com.

The financial advice business is undergoing significant change, particularly in the accounting and wealth management sectors. The arrival of private equity firms, combined with the rise of M&A and rapid advancements in technology, has shifted the landscape considerably. While these changes are unsettling to some practitioners, I view them as opportunities.

MORE: Four Core Principles for Elite Wealth Management | Why You Need a Team of Experts | Why a Virtual Family Office? Why Now? | Is Your Client’s Umbrella Big Enough? | Your Client’s Instincts Are Wrong | Preserving Wealth Is a Different Mindset | Three Approaches to Investment Consulting
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In many ways, a CPA is a flywheel at the center of the financial advisory engine. All the other providers and advisors rotate around the CPA, and together they build momentum as the firm expands its offerings and as the advice engine gains speed and confidence.

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Robert Fligel: Private Equity Shakes up M&A

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Opportunity or threat? It depends.

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Private equity takeovers of accounting firms are changing the rules for the CPA business, impacting succession plans, shifting talent strategies, and reshaping the competition, according to Robert Fligel, CEO and founder of RF Resources, one of the nation’s leading advisors.

MORE: Dustin Verity: Keep an Open Mind and Constantly Learn | Secret to Success? A Growth and Abundance Mindset | O.D. Lanier: Stepping Into Advisory | From Tax to Transformation | Early Adopters Gain an Edge in Audit | Why the Future is in Risk Advisory | Four Strategies for a Future Ready Firm Clayton Oates: One Way to Keep Clients for Life | Randy Crabtree: Follow These Three Rules to Keep Employees Happy | Erik Solbakken: Yes, You Can Work Less and Make More

SEE ALL: Podcasts and Videos here

In this exclusive interview with CPA Trendlines, Fligel, a veteran dealmaker in the vast and active New York market, explains what PE firms may not want you to know, why CPA firms are suddenly so much in demand, and the often-uncertain outlook for owners, staffers, and the profession.

For some, PE is an opportunity. For others, a threat. Fligel helps sort it all out.

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Five Business Models for Wealth Management

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Choosing the wrong one could be detrimental to your firm.

By Russ Alan Prince
Your $5 Million High-Net-Worth Practice

Central to establishing your accounting firm’s wealth management practice is selecting a suitable elite wealth management business model. A lot of thought goes into deciding first if wealth management is applicable and meaningful at an accounting firm; and second, if so, the best way to establish and grow a wealth management practice.

MORE: Stop Selling and Start Discovering | Create Family Dynasties and Add Value, ROI | Four Core Principles for Elite Wealth Management | Is Elite Wealth Management Right for You? | Wanna Know What Clients Say About You? | Why Accountants Fail at Wealth Management
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The choice of business model makes a great deal of difference. There are five main business models to choose from.

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