MERGERS & ACQUISITIONS

What do you want, and who will manage getting there?

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

Mergers of equals or firms close to equal (some call these sideways mergers) are much less common than mergers in which there is a clear survivor. But they do occur.

MORE: 61 Things Buyers Should Explore with Sellers | Why Merging in Smaller Firms Is Fabulous | 13 Reasons to Merge Up | Thinking Merger? First Ask Why.
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There are two reasons that mergers of equals are rare.

First. Mergers of equals are much more difficult to negotiate. In traditional mergers where there is a clear surviving firm, the buyer is in a strong position to dictate the deal terms and governance policies, and the seller respects this.
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Eleven reasons to do it.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

If an opportunity to merge in an attractive smaller firm was presented to you, would you be interested in pursuing it?

My guess is that at least 90 percent of all CPA firms would answer this question with a resounding yes! (And a healthy percentage of the remaining 10 percent perform at such high levels that they cannot conceive of merging in a smaller firm whose performance falls well below their own high standards.)

MORE: Selling Your Firm? What to Expect | Thirteen Ways to Woo Potential Firm Buyers | 13 Reasons to Merge Up | Merger? The 100 Data Points You Need First | One Times Fees Isn’t the Only Way | Thinking Merger? First Ask Why. | Why Do You Want to Merge? Be Honest. | Four Reasons to Fear a Merger
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Why is this? The short answer is that it’s a great deal, both financially and operationally. It’s an almost can’t-lose proposition, as long as you do it right.
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Down payment? Unlikely.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

We’re talking about mergers of accounting firms and turning to specifics the seller should expect.

MORE: Thirteen Ways to Woo Potential Firm Buyers | 13 Reasons to Merge Up | Merger? The 100 Data Points You Need First | One Times Fees Isn’t the Only Way | Thinking Merger? First Ask Why.
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The items in this article are very common examples of what sellers should expect from buyers. Sellers are obviously free to try to negotiate any and all aspects of the deal that they want. But most buyers will not relent very much, if at all, on the items listed here.
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Everyone wants a smooth transition.

By Ira Rosenbloom

The complexities of succession are significant no matter whether the route you take is internal or external. Either scenario requires a significant time investment, and each one has different features with associated levels of change and adjustment.

MORE: Refocus on Year-Round Best Practices | 5 Keys to M&A Success | 10 Steps to a Superior Tax Department | 10 Ways to Protect Your Best Clients from Your Competitors | Are You Overthinking an M&A Deal? | How to Put the ‘Success’ in Succession

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However, regardless of where they come from or how they got there, CPA firm successors share common ground in the five priorities below.

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A cautionary case study.

By Martin Bissett
Passport to Partnership

The Passport to Partnership study collated a number of responses in a conversational style. The main example that really stood out as the major indicator of a need for each future leader to be able to convert new business is showcased below and was repeated many times in various different ways.

If this person wants to be considered for partnership in the future, we look at how are they promoting the firm to potential clients now.

Meaning: If you’re trusted enough to represent the firm publicly, what perception are clients and potential clients getting about the firm based on their interactions with you?

MORE: Seven Things That Good Advisors Skip | Nine Biz-Dev Metrics for Making Partner | Communication Isn’t about You | How to Measure Partner Potential | Checklist: Partner-Ready Metrics | Checklist: 10 Keys to Landing Your Next Client
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Plus how sellers should assess them.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide
[Now Updated and Expanded]

Once sellers have created a list of firms they will consider as a merger partner, the first step is often to talk by phone or video call with the buyer and ask basic questions to determine if a get-to-know-you meeting makes sense.

MORE: 13 Reasons to Merge Up | Merger? The 100 Data Points You Need First | One Times Fees Isn’t the Only Way | Thinking Merger? First Ask Why. | Why Do You Want to Merge? Be Honest. | Four Reasons to Fear a Merger
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The forms below are good cheat sheets.
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