Due diligence & transition
Keeping It Together (Part 2 of 2)
Originally published in the Journal of Accountancy, April 2009. Retirement, health issues for an owner, the desire to grow—all
of these are reasons firms engage in mergers or acquisitions. Most
firms decide to merge or acquire only after considerable analysis
of financial and professional outcomes. In last months issue we gave general
advice for ensuring a merger or acquisition goes smoothly. But a firm’s
ability to make a successful deal depends not only on deal structure
and due diligence but also on the successor firm’s ability to retain clients
and staff. Unfortunately, an agreement between the partners of two firms
to combine has nothing to do with whether staff and clients stay or leave.
Short-Sighted Mistakes Made In Due Diligence
Originally published in AICPA Small Firm Solutions, Late Summer 2009
When valuing a business, historical data is a key concern, but proper due diligence also requires a strong focus on the future. A merged or acquired firm is a different entity from what it once was, and the effects of this transformation must be considered in sizing up any potential deal. Here are some examples in which data about the current firm don’t tell the entire story.
The Value of a Smooth Transition in Tough Times
Originally published in the AICPA SMALL FIRM SOLUTIONS, Spring 2009.
During a time of economic uncertainty, both buyers and sellers will be giving extra scrutiny to all aspects of a merger or acquisition. A key measure of a deal’s success is the percentage of clients retained after-wards. To plan for the highest level of retention possible, start by considering why you have your clients. Most are unaware of your competency level. They trust that you are knowledgeable and capable, but the key word is trust. You are their most trusted business adviser and this trust can be taken advantage of, in a professional and ethical way, and should not be feared.
Transition Plan - Transitioning Clients and Staff During a Merger or Acquisition
Originally published in MSCPA's The Asset July 2006
You’ve identified the firm you are going to buy, sell or merge with, worked out the terms of the deal, and know how you will operate after the closing. How do you transition clients and staff to maximize retention?
Due Diligence Before Buying or Selling an Accounting Practice
Originally published in the CPA Journal by the New York State Society of CPAs February 2005
Many think that due diligence is the first step before negotiating the purchase or sale of a professional practice. This is not necessarily correct.
|
