• 866-279-8550

What are Several "Must Do's" if I Have a PCA?

There are several must do's if you enter into a PCA with another professional or firm:

  • you must be realistic
  • you must design an attractive compensation agreement for your PCA partner
  • you must realize you are trying to alleviate or eliminate the enormous amount of stress placed on your family and staff during a very difficult time
  • you must acknowledge the PCA is a living agreement that needs to be completely reviewed semi-annually or annually
  • you must consistently update the PCA practice procedures manual you will have created for your PCA partner
  • you must consistently communicate to those surrounding you - staff, family, successor firm, etc. - the who, what, where, when and why
  • you must acknowledge that firms that are passive with regard to keeping their PCA Partners updated typically have poor results
  • you must acknowledge that a PCA is not a succession plan - it is an agreement that is designed to try and replace you immediately and there are many issues and challenges to doing so. A succession plan is a scaled opportunity to realize the highest value, purchase price, client retention and growth of opportunity. A PCA cannot provide these same benefits

A good deal is a fair deal and all must be represented in the PCA itself --- you, your staff, the successor or PCA partner and the clients.

For your information:

Return to M&A FAQ

If you have a question about your practice, its value or are seeking information about merger or merging, please use the Ask the Advisors program. There is no fee or obligation for this service. This is a confidential service. Please ensure the email address or telephone number you provide is secure or private.