Thursday, February 7th, 2019

Mergers 2019

“A dream doesn’t become reality through magic; it takes sweat, determination and hard work.” – Colin Powell

My firm did its first acquisition/merger in 1993. It was a fast way to grow and to enter a new market. It worked for us and the firm did several more over the years. The firm also acquired non-traditional firms such as an employee benefits firm and a TPA company when it was very unusual to do so.

Things have certainly evolved in the CPA firm M&A market since 1993. During our first merger, all we could think about was not losing clients of the acquired firm. We did not lose clients but we lost employees. We learned from that experience and for the next acquisition around 1996 and going forward, we focused on retaining talented people. It had become more important to retain people than clients.

Daniel Hood of Accounting Today recently interviewed several CPA consultants who focus on M&A. There are major changes ahead for M&A. Valuations of firms are declining. It is becoming a buyer’s market. Acquirers are more selective and do not necessarily want more compliance clients. The cost of technology, going forward, is also an issue, especially for smaller firms.

Be sure to read the interesting article. I know many of you are experiencing a succession dilemma.

  • "The difference between the impossible and the possible lies in a man's determination."
  • Tommy Lasorda

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