Most firms are pursuing mergers either upstream, (i.e., looking for a firm to merge into) or looking for mergers as a means to expand their firms. The difference between a merger and an acquisition or sale is generally determined on whether some or all the owners of both firms acquire or retain equity in the combined firm. Normally in an acquisition, the owners of one firm do not acquire equity in the combined successor firm. Many mergers are a combination of a merger and an acquisition providing an exit strategy for the senior partners and a long-term growth strategy for the younger ones. The two most common mergers are upstream mergers and mergers for growth.

Upstream Mergers

The common reasons smaller practices look for a larger firm as a merger partner are:

Mergers for Growth

The reasons practitioners pursue mergers as a means of growing their firms include:

More information on mergers: