mergers & acquisitions

the pluses and minuses for a cpa firm merger

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the 15 good signs and 17 warning flags to look for.

for some reason, cpa firms seem to find it much more daunting to evaluate a merger involving their own firm than that of a client’s. but the same methods and procedures you’d use to advise a client can be put to use in considering your firm’s next merger or acquisition. here, marc rosenberg, in how to negotiate a cpa firm merger, lays out the pluses and minuses to look for in a deal… 15 pluses and 17 minuses, to be exact. read more →

why merge and what to watch out for

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four checklists for thinking through the process, picking the right candidate and making it work. 

by august aquila
creating the effective partnership

it seems that you can’t pick up a newspaper today without reading about a merger of national, regional or local firms.

if you are a partner in a cpa firm that is contemplating a merger, you are about to enter into an extremely risky venture. this article will help you to lessen your risk and give you a better chance of having a successful merger. read more →

9 essential calculations for retirement buyouts

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and the difference between smaller firms and larger firms.

by marc rosenberg
author of how to bring in new partners 

maybe you’ve noticed this too: many midsize and larger firms retire partners at one times annual fees or less, while smaller firms are often sold for well over that.

how can you reconcile those two very different valuations? the answer, of course, is in the math.

here are the nine essential calculations… read more →

information needed when merger discussed

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ed mendlowitz cpa the practice doctor q and a

by ed mendlowitz
“tax season opportunity guide“

question: what do you ask for when considering a merger?

response: this is a “you show me yours and i’ll show you mine.” you should have this
information fairly well organized.

also, look at it critically and try to imagine what a prospective partner would say, and how you would react if this were someone else’s information that were being presented to you.

here’s a 23-item list: read more →

today’s top trends in deals and valuations for cpa firm mergers and sales

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the eight most important facts in settling on a multiple.

with the merger-and-acquisitions frenzy showing no signs of slowing down, practice owners seem to be checking almost daily: what’s my practice worth?

“one thing is for sure,” says gary adamson, former ceo of brady ware, a top 200 firm, now providing advisory services for firms across the country, “baby boomers are selling at a rate that the profession has never seen before.”

it’s still a sellers’ market, he says. but that could change soon, he says, citing “the demographics and the thousands of practices that will soon come onto the market.”

in this report, adamson addresses:

  • the question of valuing a practice
  • two basic types of deals
  • the value of a multiple
  • eight critical components to making a deal
  • the effect of size of practice on valuation
  • profitability
  • down payment
  • transitions read more →

when should you sign a new lease, merge or just retire?

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a seven-step process to confront the questions raised by lease renewals.

question: i signed up with a broker who introduces buyers and sellers of cpa practices, to find someone who would buy my practice when i want to retire. i don’t want to retire yet, but am starting to think about it. the broker suggested a merger now combined with a buyout deal when i am ready to retire. am i going about this in the right way? read more →

questions and answers on selling a practice to staff members

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by ed mendlowitz
author of “implementing fee increases“

i received two related questions, which i’ll answer together.

first question: i am nearing retirement and want to sell my practice to two longtime staff people, but they don’t get along, and i’m afraid to sell to them. what should i do?

second question: i have a large individual tax practice, but also have an audit practice that is handled by different staff in my firm. how do i sell this practice? none of the larger buyers want the tax clients and none of the smaller buyers want the audit clients. read more →

what to think about before you start thinking about merging your practice

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plus: key considerations in evaluating a practice continuation agreement

by ed mendlowitz

question: what i should do about merging? i need a specific answer.

answer: i can’t give you an easy answer. i can give you a process to follow that should provide an answer. actually, this works pretty well and i’ve gotten good feedback from many colleagues. i’ve also rethought it many times, and still think this is the way to go about it.

read more →

why solo cpas won’t sell out

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and what to do about it if you want to buy their practice. what is it about the sole practitioner that prevents them from doing something that seems to make so much sense? they need to do something soon about … continued

valuing your practice for partner retirements

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how to brace yourself for the “baby boomer bubble.”

by gary adamson, cpa

i think about the bbb a lot. no, this bbb is not the better business bureau; it is the baby boomer bubble. there is constant reference by the news media about the aging of the baby boomers but i for one did not know exactly what it meant. until i googled it.

related: how to create a no-equity partner position in your firm | what a coach can do for you – and your firm | how to balance the six jobs of managing partner | planning a partner retreat for real results | the partner compensation checklist | how cpa firms make money in turbulent times

what i found is not good news for the accounting profession. the bbb is 76 million of us born in the united states between 1946 and 1964 and we are fairly evenly spread through those 19 years. that means the oldest of this huge bubble are 4 million folks who turned 65 last year. and, we have another 18 years to go!  read more →

cpa firm merger “non-negotiables”

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get the instant download: “merger must-haves checklist (pdf)”

by marc rosenberg

after many of you read this, you may think i’m talking from both sides of my mouth. but give me the benefit of the doubt and read on before making any snap judgments.

“non-negotiables” (others call them “must-haves” or “dealbreakers”) are the terms that the seller of a cpa firm feels he/she must have in order to do the merger. the extent to which the seller will insist on receiving his/her “must haves” is dictated by how the overall negotiations proceed. each side usually makes compromises; terms that initially were “must haves” often become “nice-to-haves” at the end of the day.

deciding your “must-haves” can be both a good thing and a bad thing at the same time. let me explain. read more →

thinking merger? look before you leap

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august aquila

the seven essential phases of a successful merger.

by august aquila
aquila global advisors

if you’re contemplating a merger, then stop and think for a moment. a successful deal requires careful thought and planning.

in this article, we examine the seven phases common to most mergers. and 卡塔尔世界杯常规比赛时间 pro members will find the free instant download: “the pre-merger data gathering checklist for an accounting practice.” read more →

preparing to sell your practice in a few years? 13 things you need to know today

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what to do before you put your practice on the market.

here at 卡塔尔世界杯常规比赛时间, ed mendlowitz answers some of the toughest questions practitioners can throw at him. he’s the right one to ask. after more than 40 years in the business – building his own practice, running the firm, and eventually selling it to a major regional firm, withumsmith+brown, where he remains a senior partner and consultant to professional services clients – he has the answers. we’re happy to have him at 卡塔尔世界杯常规比赛时间. send your questions for ed here, or chime in with comments below.

meanwhile, browse more from ed here:  what’s a tax practice worth today?  /  congratulations! you bought a tax practice. now what? | how accountants can keep the business when a client wants to sell theirs | 10 reasons clients don’t pay, and what to do about it | 13 reasons timesheets will never die | 

— rick telberg
president / ceo

question: i am getting older and want to continue working at least five more years.  should i merge now to anticipate and facilitate a buyout?

read more →