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Merger Checklist: 34 Action Steps

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https://cpatrendlines.com/2021/11/09/why-its-time-for-an-acquisition/

There are a lot of decisions to make.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

Most firms find that it takes three to four years to fully implement a merger. But during the first few months after the effective date of the merger, there are quite a few administrative and procedural things that need to be attended to immediately.

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Most firms try to get as much of a head start as possible, before the effective date of the merger.
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The Six Types of Due Diligence You Need before Merging

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Don’t concentrate on some and breeze through others.

By R. Peter Fontaine
NewGate Law

My approach in writing this post is to give you a comprehensive list of due diligence items for your consideration, and to let you select the reviews you wish to perform. The ultimate decision rests with you.

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The scope of due diligence will differ depending on the transaction, and should be appropriately tailored. However, your Letter of Intent combined with the six areas outlined below result in a fairly comprehensive list of due diligence procedures that should serve the needs of most CPA mergers.
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Why Solos Need Practice Continuation Agreements

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Woman and man shaking hands across a desk
It’s a favor, so negotiate generously.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

A Practice Continuation Agreement (PCA) is a written contract between a sole practitioner and another firm for the latter to take over the solo’s practice, either permanently or temporarily, in the event of a sudden, unexpected event that prevents the solo from working, most commonly a health issue.

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Logically, it would make total sense for every one of the 30,000 sole practitioners in the U.S. to have a PCA in place. After all, the solo has no other partners to take her place and in the vast majority of cases, the solo’s staff doesn’t have the skill level or the certifications needed to run the practice in the absence of the owner.
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Five Can’t-Skip Steps for Due Diligence

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businessman reading documents

Don’t let deal fatigue lead you to shortcuts.

By R. Peter Fontaine
NewGate Law

Few CPAs enjoy the due diligence part of a merger. It’s like proofreading legal agreements or checking the answers to a test before handing it into the teacher. It’s not very exciting.

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By the time due diligence begins, the parties have usually decided they want to come together and due diligence is viewed as a process to confirm a decision which, for the most part, has already been made.
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How to Merge Two Solo Accountants

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two men standing and shaking hands

A list of 21 issues to consider.

By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide

When considering a merger of sole practitioners, there are numerous critical issues to negotiate. Twenty-one, in fact.

MORE by Marc Rosenberg
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1. Method/system for splitting the profits. Keep in mind that if you devise a system that essentially revolves around making each solo a profit center, as if they still had their own firms, it will tend to discourage the two of you working together as one firm.
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