Navigating Through Preliminary Merger Discussions

Most M&A deals typically go through five stages: preliminary discussions; transactional detail meetings and negotiations; an initial agreement outlined in a memo of understanding or letter of intent; due diligence; and the transaction agreement and signing of the partner/shareholder agreement. Quite often, I am asked what are the pertinent types of questions that should be asked by the selling firm in an M&A transaction in the first few meetings. The following are some examples: Vision, ... continue reading

The 2017 Accounting & Business Show

We hope to see you at the Florida Institute of CPAs 2017 Accounting & Business Show this week!  Accountants Advisory Group is proud to be an exhibitor, and information about our CPA firm advisory services and “RedZone Practice Management” will be included in the show bag.  Please stop by Booth #419 to say hello.  Sign-up for our RedZone blog and enter for a chance to win a comprehensive Marketing Consultation.  We hope to see you ... continue reading

Growth via Acquisition

This article appeared in the September/October 2017 issue of the New Jersey CPA. Most accounting firms reach a point in their life cycles where their ability to generate growth internally falls short of their profitability goals and objectives. Mergers and acquisitions (M&A) have proven to be far more productive and much more successful than building growth organically, which can be a painfully slow process (especially for small firms) and requires significant investments in marketing and ... continue reading

Dealing with Accelerating Competition

Every week, news of mergers are announced at every size level from sole proprietors to the Top 100. The pace of consolidation is increasing rapidly and will continue to accelerate for the next five years and beyond. The median age for baby boomers is around 62. Baby boomer partner succession demographics and the dynamic market forces such as client demands for more sophisticated advisory services, advancing technologies, and competition for quality staff and clients are ... continue reading

Culling the Herd (Clients)

In the ranching industry, culling is the process of removing or setting aside livestock from a herd based on certain “retention criteria.” This is done to remove undesirable cattle from the herd that are absorbing valuable rancher resources, thereby lowering the rancher’s return on investment of time and money, and thus reducing profits. Similarly, undesirable clients in public accounting firms also absorb valuable resources similar to a rancher’s dilemma. No firm wishes to lose clients, ... continue reading