How can a deal be structured if I am 1 to 5 years from slowing down but don’t want the accountability of merging with my successor, giving up income or control? Are there alternative deal structures as well?

It is critical that firms leave appropriate time for a transition, which can take a few years. Most practitioners, however, are hesitant to merge with their ultimate successor too far in advance, as they prefer not to: Give up control. It is hard to be master of your domain and then suddenly have the accountability […]

How are clients and staff transitioned to maximize retention?

All the time, effort, energy and money expended putting together an affiliation between the firms will be wasted if absolute measures are not taken to ensure client retention. A detailed transition plan is crucial because without a plan the parties are inviting failure or at the very least encouraging challenges that are not necessary. There […]

How is a successor chosen?

In most locations, clients have many choices when selecting a CPA. Since they have a choice, you need to determine why the clients have chosen you or your firm to work with. Understanding why will enable you to focus on firms that are similar in both personality and culture and can meet the Commandments of Successful […]

When should the succession planning process be started?

There are several things you must consider when determining the timing of starting to plan your succession: How often you personally see your client base. Many firm’s clients mail in the work, use portals or the cloud, are dealing with staff during the year and only see the partner(s) annually. Add those clients to your annual […]

How is an accounting firm valued?

Valuation of an accounting firm will focus on five major variables and 15 key contributors to those major variables. The five major variables focus on making your firm attractive with regard to the framework of the deal itself. No one will acquire your firm to lose money but that doesn’t mean you should give it away either. The […]