Potential Pitfalls

Many mergers are pursued for reasons that are not adequately justified including: Overhead Reduction. Some firms consider merging for the single purpose of reducing overhead. There may be better ways to use up excess overhead, including getting rid of it. The benefits of overhead reductions are short lived and will probably not sustain a merger […]

Merger agreements and structures

Structuring the merger starts with knowing your goals. What does success look like? What are we trying to accomplish? Once you establish this foundation, the types of successor firms, and targets for smaller firms and deal structures all seem to fall in line with the right thought processes and guidance from professionals who have been […]

Finding that perfect match

Regardless of the goal of a merger, first and foremost there must be the right chemistry between the firms. Culture and firm personality must be almost parallel with one another for a merger to work. They must also be able to offer clients and staff reasonable continuity to ensure retention. CULTURE. Culture can include employee benefits, […]

Why consider a merger?

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 […]

What is driving the merger mania?

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 […]