Rita Keller, an award-winning and widely respected voice to CPA firm management, is uniquely positioned to help CPAs and their teams face rapid and significant change.
“The secret of success is to be ready when your opportunity comes.” – Benjamin Disraeli
When I talk to practitioners, I always stress that if you plan to merge up, you must still pay attention to the health of your firm. Acquirers want a profitable, efficient firm. They don’t want one that hasn’t kept pace with change.
“If names are not correct, language will not be in accordance with the truth of things.” – Confucius
It has been a huge trend for CPA firms during the last 15 to 20 years. They modify their name and end up using just initials.
I must admit, I have found it rather confusing as I work and network with many small to mid-size firms in the USA. Using a fake firm, my mind goes with something like this…. JBG, what does that stand for? Is it the firm that used to be Jones Brown & Green?
I agree with the author. Why not use a name, something people can remember more easily? Like, Jones Brown? As you read the article you will see how the author proves their point.
You might think, well KPMG uses initials. The author also explains why huge, international firms can more easily get away with it.
I think you will find it an interesting read, especially if you are thinking of rebranding.
I apologize if the name of your firm is Jones Brown or JBG. I just used it as an example.
Names are the sweetest and most important sound in any language.
“Alone we can do so little; together we can do so much.” – Helen Keller
I have known Marc Rosenberg for decades. He is a good friend and colleague. We enjoyed so many enlightening years together in The New Horizon Group. And, I have known Kristen Rampe for many years and have recommended her to many of my clients and contacts. It makes me happy that these two have joined forces to create a new force in the CPA firm consulting world. My best wishes and congratulations to both and to their team.
Below is the news from both Rosenberg and Rampe.
From Marc Rosenberg:
“I am thrilled to be uniting with Kristen Rampe’s team,” said Marc Rosenberg, founder and Co-Managing Partner of the new Rosenberg Associates. “During our five years of working together, I’ve witnessed first-hand how Kristen and her team have enthusiastically embraced and absorbed the CPA firm consulting philosophy and methods I have honed for twenty years. I’m equally excited to add new services such as leadership development, professional coaching, human resources consulting, and strategic planning. These new services will greatly expand our ability to meet our clients’ growing needs. I have been consulting with CPA firms for a long time and enjoyed every minute. Now, by combining with the Rampe Group, we have ushered in the next (and certainly not the last) chapter of Rosenberg Associates!”
From Kristen Rampe, Co-Managing Partner:
“Our focus, as we merge these two incredible firms, is to continue to provide innovative, proprietary consulting services to CPA firms across North America. Marc has created incredible resources for firms over the years and we are honored to become part of Rosenberg Associates so that we can provide consulting services to CPA firms for generations to come.”
If everyone is moving forward together, then success takes care of itself.
“The end is near when organizations don’t develop people.” – Dan Rockwell
Do you foresee the end of your firm?
The quote, above, describes what has happened to public accounting firms. The quote, above, is the reason that M&A frenzy has survived for so many years.
Years ago, I remember Allan Koltin sharing a list of CPA firms that used to be in existence. They were nationally known firms and they disappeared for various reasons – poor management, reputations lost, scandal, and sometimes for growth. The list wasn’t extremely long.
Here’s an example from 1990: Laventhol & Horwath, the nation’s seventh-largest accounting firm, filed for bankruptcy protection this week under the weight of lawsuits seeking damages for allegedly faulty audits.
When we entered the new millennium, the pace of firms disappearing picked up pace and has been in a rapid race ever since. I have a long list of firms I once knew and worked with that no longer exist.
Owners aged over the last 20 years and they wanted something for their years of hard work. They readily admitted (and moaned about it) – “We don’t have anyone who can replace us!” I heard this statement numerous times and my reply: “Whose fault is that?”
Read the quote again. Will your firm end because you haven’t developed people?
Every ending is a beginning. We just don't know it at the time.
“Moving doesn’t change who you are. It only changes the view outside your window.” – Rachel Hollis
M&A is always a hot topic when you are talking with a group of CPAs. There are many aspects to M&A and each M&A opportunity is different from another.
This Wednesday, August 12th, Gary Adamson of Adamson Advisory will be conducting an informative webinar for CPA Leadership Institute about the CPA M&A landscape.
He will focus on the trends in valuations and the terms, and why the terms drive the multiples that we all hear so much about.
“Losers live in the past. Winners learn from the past and enjoy working in the present toward the future.” – Denis Waitley
On May 6th and May 7th, Gary Adamson, President of Adamson Advisory will be hosting two webinars for CPA firm leaders. The sessions are sponsored by CPA Leadership Institute.
May 6th – Valuation is Driven by Terms of CPA Mergers – And Other Keys to Success
Date/Time: May 6, 2020 @ 1-1:50pm ET
During this session, you will receive an overview of the M&A frenzy in the profession today and give you tools to help you, whether you are a potential buyer or seller. Adamson will discuss the trends in valuations and the terms, and why the terms drive the multiples that we all hear about.
May 7th – How to Maximize Performance of Best Practices in Partner Admission, Transition, and Buyout
Date/Time: May 7, 2020 @ 1-1:50pm ET
This session focuses on partner admission, transition and buyout. Adamson will discuss the 25 best practices in both admitting a new partner, buying out a parter and the transition issues associated with the buyout.
If you’re not identifying the leaders of tomorrow whom you will train up, your potential and your future will always be limited.
It a simple, short message that speaks volumes to CPAs working in public accounting. Owners of firms should have heeded this advice many years ago.
Here’s another recent tweet from Maxwell that hits home with CPAs:
No matter what it costs you, the return you receive will eclipse the price. Developing leaders is the most impacting and rewarding thing you can do as a leader.
Baby Boomer CPAs, nearing retirement, have been warned over and over again but few have acted upon the advice and now, their futures are limited. For some, it is merge-up or close-up.
Don't let what's uncertain be what defeats you. Instead, let it be what motivates you to keep reaching toward what's possible.
“Farming looks mighty easy when your plow is a pencil and you’re a thousand miles from the cornfield.” – Dwight D. Eisenhower
The Baby Boomer partners in accounting firms are facing a dilemma. The big question is what to do once they retire.
This challenge causes many to simply ignore retirement and just continue working. Many actually have a great fear of retiring. They picture retirement as spending time around the house and irritating their spouse. The spouses fear this, too! You can only play so much golf.
Because they have put in so many long hours at work during the last 35 years, they haven’t developed many hobbies or other interests outside of the CPA profession.
Stop and think about it. Most CPAs nearing retirement have been involved in numerous community and charitable organizations throughout their careers. They have become very interested in, and actually developed a great passion for, some of those organizations. Devoting time to causes you care about can be an opportunity for many productive years ahead.
I have a wonderful example. One of my former clients and a good friend, Walter Lynn merged his successful CPA practice into another firm a few years ago. While he did stay involved for the appropriate amount of time, he began furthering his strong interest in agriculture and ranching into a great passion – soil! Yes, soil and how the health of our country’s soil should be a greater concern to all of us.
He met numerous, high-profile researchers and experts and his involvement continued to grow and keep him busy doing something he thoroughly enjoyed.
Here’s what happened recently:
In response to an overwhelming demand for regenerative agriculture education and consulting services, Understanding Ag, LLC (UA), today announced the appointment of Walter Lynn, Jr. as its Chief Executive Officer.
Read the full press release here. I am so proud of Walter for taking on something that is so much bigger than grinding out his senior years in tax season after tax season. What are you going to do?
Let us not forget that the cultivation of the earth is the most important labor of man. When tillage begins, other arts will follow. The farmers, therefore, are the founders of civiliation.
“A dream doesn’t become reality through magic; it takes sweat, determination and hard work.” – Colin Powell
You have observed it. In the last several years, many mid-size firms have merged-up into the Top 100 (the AICPA calls this group the Major Firms Group).
The firms in the Major Firm Group have also joined forces to form even larger CPA firms. It is an interesting time in the CPA profession. The big get bigger and many firms I have known and admired for years have disappeared.
An interesting statistic from the AICPA, almost 40% of the Major Firms Group from the year 2000, no longer exists.
This week’s announcement about Skoda Minotti joining Marcum brought all this to mind. Read the press release here. Marcum has had phenomenal growth and success under Jeffrey Weiner’s leadership.
So, mid-size firms are disappearing. However, mergers don’t always lead to a happy life once the honeymoon is over. A lot of the big mergers will result in spin-offs and smaller firms will form and thrive.
I have a wonderful example. One of my former clients and a good friend, Walter Lynn merged his successful CPA practice into another firm a few years ago. While he did stay involved for the appropriate amount of time, he began furthering his strong interest in agriculture and ranching into a great passion – soil! Yes, soil and how the health of our country’s soil should be a greater concern to all of us.
