Featured Articles
Two-Stage Deals
Originally published in the Journal of Accountancy by the AICPA March 2006
A sequenced transition can smooth a firm’s ownership transfer.
Price Equals Value Plus Terms
Originally published in the Journal of Accountancy by the AICPA December 2004
You've worked hard for many years to build equity in your practice. Now you want to sell. Business valuation (BV) and practice succession procedures will help you prepare your practice or share of it for acquisition, but arriving at a final price for your equity will depend, in part, on the art of the deal.
Mergers & Acquisitions of CPA Firms: Understanding the Roadblocks To Successful Deals (Part 1 of 2)
Originally published in the Journal of Accountancy, March 2009. Despite the best intentions of all involved parties, some CPA firm mergers and acquisitions are not as successful as originally planned; indeed, some end as failures. When viewed in perfect hindsight, it often seems that simple common sense, or lack thereof, was the reason for the success or failure of a deal. Unfortunately, there is no specific formula for structuring a perfect deal, but a good understanding of the potential hazards relating to the variables involved and planning for the unexpected can help your firm prepare a better deal structure and business plan.
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.
What Will a Bad Economy Mean for CPA Firm M&A?
Originally published in the AICPA SMALL FIRM SOLUTIONS, Winter 2009.
Every news story reinforces the idea that we are in economically challenging times. How will these turbulent times affect the mergers and acquisitions market among CPA firms? What other practice management considerations could it raise? While no one knows with certainty what will happen down the road, a look at the past sometimes can give you a sneak peek into the future.
Succession Planning--Valuing Partner Equity in Larger Firms
Originally published in the CPA Practice Management Forum, December 2009, Succession planning is the foundation that creates a successful transition of client relationships. This article discusses how to capture and measure the value of the firm once the succession has commenced.
Succession Planning for the Sole Practitioner
Originally published in the AICPA SMALL FIRM SOLUTIONS, Winter 2008. Effectively transitioning your client relationships to a successor firm should also maximize the value of your practice.
When Should a Small Practitioner Merge Into a Larger Firm?
Originally published in the AICPA SMALL FIRM SOLUTIONS, Fall 2008. If you ever wonder what you’re missing by staying small, here’s a review of the reasons for merging and the best way to handle a transition.
Valuing The Smaller Accounting Firm
Originally published in the AICPA SMALL FIRM SOLUTIONS, Summer 2008
For many smaller practitioners, their firm is one of their largest assets. They have worked for years to develop and nurture this practice and want to receive a reward for their sweat equity and loyalty. How do you value this assett?
The Case for Mergers in This Tough Economy
Many firms are wondering how the economy should impact a decision to go forward with M & A deals right now or in the near future.
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