MERGERS & ACQUISITIONS

Thirteen Things to Know Before Selling Your Practice

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Older businessman sitting at desk smiling as wall clock indicates 5 minutes to retirementTiming is critical.

By Ed Mendlowitz
101 Questions and Answers: Managing an Accounting Practice, The Complete 2-Volume Set

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

A: Selling means retiring. Is that something you want to do?

MORE: 10 Reasons Clients Don’t Pay
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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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13 Reasons to Merge Up

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woman ladder binoculars city view outlook vision success climb AdobeStock_57204649.jpegAnd sellers’ 13 top worries.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

Merging up or selling a firm is one of the biggest life milestones that a CPA firm goes through.

MORE: 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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You’ve toiled long and hard to build your firm. It’s your life’s work. Adding to the anxiety is the element of facing your own mortality. When people contemplate big personal or business decisions, it’s common to need to move through several stages mentally. Merging your firm is no exception.

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Merger? The 100 Data Points You Need First

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meeting of six peopleThe finer points of getting to know one another.

By Marc Rosenberg
CPA Firm Mergers: New and Updated

Before negotiations begin, it is very helpful for merger partners to prepare a one-page, written description of their firms. This advice is for both the buyer and the seller.

MORE: 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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At the risk of offending some of you, we have found that when firms initially describe themselves, the person doing the listening does a terrible job taking notes. None of our memories are as good as we think they are. Because in almost all cases, each firm will soon be describing the other to their partners, it’s always best to follow up the oral description of your firm with something in writing.

What follows is:

  1. What the written firm description should include (12 items)
  2. Get-to-Know-You Meeting between Buyer and Seller (the agenda)
  3. Sample Firm Description
  4. The Get-to-Know-You Meeting Cheat Sheet
  5. Key Questions for the First Meeting (43 items)
  6. 20 Questions to Ask Right Away
  7. The Data Needed to Evaluate a Merger
  8. Financial and Operating Data to Exchange (58 items)
  9. Client List (with 9 items for each)

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

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Featuring Ira Rosenbloom, CPA (LR), “The Merger Master”

A CPA Trendlines Flash Briefing: Rapid-fire 30-minute how-to, followed by an all-questions-answered discussion with participants.

Stream the video or listen to the podcast: Follow CPA Trendlines Podcasts on Apple Podcasts here or grab the RSS feed here.

With Rick Telberg
for CPA Trendlines 

CPA firm M&A advisor Ira Rosenbloom presents “The Seller’s Guide to Getting the Best Price for Your Firm,” a Flash Briefing webinar hosted by Rick Telberg for CPA Trendlines.

PRO Members: Get the Top Take-Aways, the Transcript, and the slide deck download, with a bonus “12-Point Checklist for Seller Readiness:”

GoProCPA.comPRO Members: Log in here or upgrade to PRO today.

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One Times Fees Isn’t the Only Way

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Check the math.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

Partners in accounting firms are familiar with the rule of thumb that a CPA firm’s goodwill (excluding capital) is worth one times fees. However, like many rules of thumb, this notion is often incorrect.

MORE: Thinking Merger? First Ask Why. | Why Do You Want to Merge? Be Honest. | Four Reasons to Fear a Merger
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

When buyers begin to think about how much they will pay for a smaller firm, they often have this one-times-fees notion in the back of their minds. Then, when sellers are bold enough to ask for a price in excess of one times fees, buyers often balk.
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Brannon Poe: The Status Quo Must Go

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Follow CPA Trendlines Podcasts on Apple Podcasts here or grab the RSS feed here.

The Disruptors: Brannon Poe
With Liz Farr for CPA Trendlines

Brannon Poe is the founder of Poe Group Advisors and the creator of Accounting Practice Academy. He began facilitating successful accounting practice transitions in 2003. Today he is pioneering a consulting-based approach to transitioning accounting firms, culminating in Poe Group Advisors’ proprietary process for a “seamless “succession.”

In this episode, Poe tells CPA Trendlines:

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Thinking Merger? First Ask Why.

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Businesswoman walking up stairsKeep your deal-breakers and must-haves to a minimum.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

It’s important to understand the flow of the entire merger process. Always start with the big picture before getting into the details.

MORE: Why Do You Want to Merge? Be Honest. | Four Reasons to Fear a Merger
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Every merger has its unique aspects. It’s impossible to choreograph from A to Z exactly how the process for each merger will work.

The steps in the process listed below appear in the order of how they commonly occur.
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