MERGERS & ACQUISITIONS

And how these deals compare to traditional CPA firm deals.

By Marc Rosenberg
The Rosenberg Practice Management Library

One of the biggest game changers in the CPA profession since the dawn of the 21st century has been the introduction of private equity in merger transactions.

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Prior to roughly 2020, 99 percent of all CPA firm mergers were between two CPA firms. An early exception was the “consolidator” phase of the CPA industry from the mid-1990s through the early 2000s. This is when three companies, the consolidators – American Express, H&R Block and CBIZ – acquired a few hundred CPA firms, spawning the creation of alternative practice structures. Because CPA firms must be majority owned by CPAs, this new structure featured the attest function spun off as a separate but related entity, owned primarily by CPAs while the remainder of the firm was owned primarily by the consolidators.
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Buckle up for 2025.

By CPA Trendlines Research

Curious about the deals that went down in 2024 and how they might inform your next move? Marc Howard is, too. So, he compiled a comprehensive list.

Howard is a serial entrepreneur in the accounting space, Host of the Pitch Your Firm podcast, founder of Firmlever, founder of Taxplow, co-founder of BizPayO, and creator of Tax Advisor GPT.

Howard found upwards of 115 deals in 2024, ranging from the first deal of the year, ATA CPAs’ takeover of  Whitehorn Tankersley & Davis on Jan. 3, to the last, Platform Accounting Group’s roll-ups of Midwest Advisors and Crossroads Advisors on Dec. 23.

Some of the most active buyers on his list include CBiz, which counted Marcum among its three deals; Citrin Cooperman, with eight deals; CLA, Crowe, and Doeren, each with three; and Eisner, with four deals.

He predicts an even busier 2025 for the profession.

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This is your starting point.

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

QUESTION: What do you ask for when considering a merger?

MORE: I’m Just Starting Out; Why Join an Association? | Don’t Blame the Client for Your Location | Who to Hire When It’s Time to Grow | The Top Tip for Reviewing Tax Returns | You Can’t Win with Lowballing | Yes, You Have to Share Work Papers | Should You Merge? Here’s How to Chart Your Path | Hold Staff Accountable If You Want Them to Listen to You | Higher Fees to Start: Ten Ways to Make Your Tax Season Better
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RESPONSE: This is a “you show me yours and I’ll show you mine.” You should have this information fairly well organized.

Also, look at it critically and try to imagine what a prospective partner would say, and how you would react if this were someone else’s information that were being presented to you.
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