Merger mania is alive and well in our profession. There are many reasons for the dramatic increase in merger activity in recent years and for the foreseeable future including:
- Aging of the Baby Boomers
- Increase in regulations and/or requirements
- Competition
- Niche service development or expansion
- Talent shortages
- Risk management
- Succession solutions
- Quality of life enhancement
- Practice growth
- Realization of synergies
- Strengthen or expand service offerings
- Geographic expansion
- Aging of the client base
- Cross-selling opportunities
- New client acquisition
Many firms are using mergers to assist firms who have partners that will seek succession but currently lack the bench strength to fill the void, also to build bench strength, increase their platform of service offerings or to strategically expand their geographic reach.
If your firm has just one of the needs or goals mentioned above, a merger should be high on the list of potential solutions.
More information on mergers:
- Mergers & Acquisitions of CPA Firms: Understanding the Roadblocks to Successful Deals by Joel Sinkin and Terrence Putney, Journal of Accountancy, c2009
- Mergers Emerge as Dominant Trend by Joel Sinkin and Terrence Putney, Journal of Accountancy, c2013
- Seven Steps to Closing a Succession Sale by Joel Sinkin and Terrence Putney, Journal of Accountancy, c2013
- Bridging Compensation Gaps in a Merger Journal of Accountancy, c2012
