MERGERS & ACQUISITIONS Archives - Page 15 of 66

When Selling a Firm to Staffers Is Tricky

April 8, 2024

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?

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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.

Want to Merge? Six Steps to Take

April 1, 2024

By Edward Mendlowitz

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.

Thirteen Things to Consider Before You Sell Your Practice

November 13, 2023

By Edward Mendlowitz

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

August 7, 2023

By Rory Henry

“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.

Ira Rosenbloom: With M&A, Nobody Wants a Fixer-Upper

July 7, 2023

By Liz Farr

Buyers want sellers who invest in the long game.

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The Disruptors
With Liz Farr
for CPA Trendlines

Ira Rosenbloom has been working in the M&A space for accounting firms for over a decade and says it’s a complicated and exciting time in the M&A space today. “We’re seeing a lot of things that make sense, and a lot of things that are frustrating because they make sense, and a lot of things that make no sense,” he said.

Staffing problems on both sides are forcing buyers to be far more selective about the firms they consider buying.

SEE ALSO: The Seller’s Guide to Getting the Best Price for Your Firm

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Today’s buyers are different in many ways than the sellers. First, Rosenbloom explained, baby boomer sellers tend to like to talk to people, while the younger generations looking to buy firms are “more selective in their communication.” Younger buyers tend to be more entrepreneurial, and “the more that the seller comes across as an entrepreneur, the more interested the buyer is going to be in what’s going on,” he added. Buyers are also interested in firms making a break with old methodologies and sellers who “want to invest in the long game,” Rosenbloom said.
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