Due Dilligence & Transition

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.
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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.
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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?
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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.
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