A Smarter Exit for CPA Firms Without a Succession Plan

By Joe Tarasco, Senior Consultant at Accountants Advisory Group

For accounting firms with one to five partners and no formal succession plan in place, time is not on your side, especially if you’re already in your 60s. While many partners continue to deliver high-quality service well into their later years, relying on longevity without a clear exit strategy is a gamble that can cost you both value and opportunity. If you're in this position, selling sooner rather than later can protect your legacy, your clients, and your financial future.

Declining Value Over Time

One of the most significant risks of delaying a sale is the potential for diminishing firm value. As the partners age, the firm becomes increasingly reliant on a shrinking leadership base with limited runway. Buyers, especially larger firms, are keenly aware of this. A firm with aging owners and no identifiable next generation is often viewed as a high-risk acquisition. This can reduce your firm’s appeal and lead to a lower offer or difficult terms.

Additionally, if revenues begin to decline due to reduced business development efforts or loss of key staff, the firm’s valuation could be severely impacted. Selling at a time when your firm is stable and showing consistent revenue growth will yield a better outcome than waiting until performance begins to slip.

Staffing and Retention Challenges

CPA firms nationwide are facing a talent shortage. Recruiting younger professionals, especially those interested in ownership—is a growing challenge. Without a succession plan or pathway for leadership development, it becomes increasingly difficult to attract and retain top talent. If your firm doesn’t offer a clear future, employees may start looking elsewhere, leaving you with gaps that are hard to fill and clients that are harder to serve.

Selling to a larger firm with more technical and advisory resources, staff, administrative and technology infrastructure, training, and growth opportunities can be an attractive solution for your team. It allows you to provide career security for your staff while gradually transitioning your client base to a well-supported successor.

Protecting Your Clients and Reputation

Your clients trust you to guide them through critical financial decisions. But what happens if something unexpected prevents you from continuing to lead your firm? Without a plan in place, clients may be left without direction, and years of built-up goodwill could quickly erode. Selling your firm while you are still active allows for a smoother transition, giving clients time to adjust and build trust with your successor.

You’ve spent your career building something meaningful. Waiting too long to plan your exit risks losing the value of that work. By taking control of the timing, you can preserve your legacy and ensure your clients, staff, and family are supported through the transition.

If you’re a firm partner in your 60s with no succession plan, the best time to explore a sale is now—not five years from now. Selling early gives you more options, stronger negotiating power, and the ability to transition on your terms. The longer you wait, the fewer options you'll have—and the more reactive your decision will become.

Don't leave your firm’s future to chance. Plan early, sell smart, and protect what you've built. Contact Joe Tarasco, Senior Consultant at Accountants Advisory Group, with any questions or to schedule a meeting.