…there will be more mergers over the next ten years than in the cumulative history of the profession up to now.
Mergers
Have you considered a merger as a new opportunity?
The accounting practice landscape has changed over the past few years and this has caused many firms to consider the benefits of merging. Larger firms merge to acquire talent, to gain more clients, for cross-selling opportunities and to enter new markets. Smaller practices often merge into a larger firm to answer succession needs that can’t be met internally, for additional back up and technological support, for cross-selling opportunities and to gain new services. Entering into a merger seems to be the right answer for many practices today.
The Movement Toward Mergers
Barry Melancon, president of AICPA, recently predicted that there will be more mergers over the next ten years than in the cumulative history of the profession up to now.
Since the pendulum is now swinging toward a preponderance of older CPA firm partners and , there has been a surge in mergers caused by the lack of suitable successors willing to take on the triple threat — managing the firm, growing the practice and having to pay out the retiring partners. Increasing financial pressures make mergers a most viable exit strategy. A merger can also be the best route for firms with multiple partners who have different goals and timing regarding growth and succession plans.
The Technique of Merging Two Firms
One might think that the most difficult part of making a merger happen is the negotiations. The truth is, the combining and co-mingling of company cultures, staffs and mindsets can be equally challenging. Dealing with new staff members, decline in staff morale and new firm directions can be quite frustrating.
This is where Transition Advisors’ consultants will guide you through the strategic and tactical steps needed to go through the process of a merger.
- Identify and confidentially solicit target merger candidates through determined communication tactics
- Arrange introductory meetings with merger candidate firms pre-approved by your firm
- Determine market value for your firm and for candidate firms
- Assist in helping to create the new firm’s identity, vision and values
- Establish short and long term goals with partners and staff
- Assist in communications to integrate firms’ work ethic
- Assist in workload integration – assigning workload distribution
- Coordinate staff meetings and facilitating production meetings
- Establishing performance benchmarks
- Prepare a confidential Practice Summary used to solicit interest from potential merger targets
We can also assist you in the process if you have one of the following needs:
- You have already identified the firm you want to merge in and need assistance completing the deal
- You are looking for a very specialized type of practice
- You are looking for a practice in a market where finding candidates might be difficult
- You want to conduct your own search and need assistance developing the process
Merging two firms together is a monumental task and cannot be taken lightly. Transition Advisors can be as involved as you require to help this major change happen smoothly. The advantages of a well-planned merger far out-weigh the disadvantages of trying to grow the practices organically in this uncertain economic time.
Transition Advisors has experience specifically in this area and has handled hundreds of successful sales, acquisitions and mergers of accounting firms.