3 Ways Firms Scare Off Successors

Man in suit pointing thumb downAnd 7 steps to making ownership attractive to new leaders.

By Terrence E. Putney
Bridging the Gap

Buying into a firm as a new owner involves great opportunity, but also significant risk. It is reasonable for ownership candidates to evaluate the potential for professional and financial rewards before taking such a step.

MORE: Sponsorship: Barrier to Exit for Diverse Talent | Use Collaboration Technology to Improve Your Firm | 3 Ways to Keep Your Team Members Connected, Engaged and Energized | Growing, Developing Future Leaders Is a Two-Way Street | A Winning Culture Is an Intentional Culture
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

Therefore, firms must be willing to honestly assess the potential risks and benefits for candidates as they seek to attract new partner-owners who can contribute meaningfully to the firm’s continued success.

Already a PRO Member? Click Here to Login & Continue Reading →

B.

Get the Key to Unlock Premium Content Reserved Exclusively for PRO Members.

Go PRO Today: Choose one of these great offers

EASY!

Monthly Plan, $24.97
Save $5/month (17%)!

CLICK HERE
FOR
INSTANT ACCESS

7-day, no-risk free trial
then billed to your credit card monthly.
(Cancel any time)
Regular monthly rate: $29.97

BEST VALUE!

Yearly Plan, $249.95
Save $110/year (30%)!

CLICK HERE
FOR
INSTANT ACCESS

7-day, no-risk free trial
then billed to your credit card annually.
Regular annual rate: $359.95

24-HOUR DAY-PASS

One-Time, $12.99
Best for occasional use.

CLICK HERE
FOR
INSTANT ACCESS

Get instant access, expires in 24 hours.
One-time, non-recurring, charge of $12.99

Terry Putney

Head shot of Terry Putney

About the Author

Terrence E. Putney, CPA, is CEO of Transition Advisors, a mergers-and-and-acquisitions broker for CPA firms. Terry has more than 35 years’ experience in the CPA profession. For six years, he served as Managing Director - Mergers & Acquisitions for RSM McGladrey, the country’s fifth-largest accounting firm and held several executive posts with its corporate parent, H&R Block. At RSM, he structured and negotiated numerous deals resulting in the acquisition of accounting and consulting firms ranging in size from sole proprietors to multi-state firms with hundreds of staff and professionals. Prior to joining McGladrey, he served as Managing Partner of Donnelly Meiners Jordan Kline, a 60-person CPA firm in Kansas City.

Terry believes it’s imperative that practitioners have a clear understanding of their objectives when pursuing a sale of their practice or the merger with, or acquisition of, another practice. “I've seen deals not work or not materialize because one of the parties to the succession plan had not thought through what they really wanted to accomplish. Transition Advisors will make sure the approach to executing your plan will meet your objectives. Because we are consultants and not brokers, we can be much more flexible in helping a firm succeed with its transition plan.”

Click here for more by Terry Putney