Thursday, May 12th, 2022

Getting Ready To Grow or Merge Up

“Three things in human life are important: the first is to be kind; the second is to be kind; and the third is to be kind.” – Henry James

As I have for many years (decades?), I urge every CPA practitioner to get their house in order. That means having a solid foundation to build on. Acquirers don’t want to merge with a firm that is unorganized and/or dysfunctional. Future partners don’t want to buy in to something that is not attractive.

There are some very basic things that CPA firm leaders need to do to continually increase the value of their firm. Of course, CPAs must be technically competent, good communicators, and committed to client service. You are in a service business, just like a hotel or restaurant.

Beyond those basics, a couple more foundational items are needed to create firm value.

Culture – You (and your partners, if you have some) should devote your attention to creating a culture in which you want to work, providing your employees with a clear picture of acceptable behaviors that exemplify your core values. A culture built around consistent and strong core values will attract people with those same core values. If you discover employees who do not embrace your core values, they should be encouraged to go elsewhere.

Processes – Another foundational item thing you can do to increase the value of your firm is to implement processes, procedures, and policies that are well-documented in writing. This means the success of your firm is not solely on your shoulders and not dependent on just a few people. Having written processes and procedures ensures that you can easily get new employees up to speed quickly.

  • "Happiness is not something ready-made. It comes from your own actions."
  • Dalai Lama

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