A CPA's decision to sell or merge their practice should not be based on whim. There are many solid reasons to motivate such a decision. Here are six common factors that can lead one to a merger, sale, or acquisition.
By Ira S. Rosenbloom, CPA (inactive)
Some people wake up one day and decide that it is time to sell their home and move. This, too, can happen to CPAs: one day they decide that it is finally time to sell, merge with, or acquire another firm. It doesn’t have to, nor should it, be up to whim. There are many solid reasons to motivate one to make such a decision. Here are six common factors that can lead to a decision to merge, sell, or acquire.
These are just a few signs that might spark the beginning of the M&A process. One of these red flags by itself may not be reason enough to push the decision to merge, sell, or acquire. Yet, together, the signs paint a picture of a business that needs to find a better way to work now and a new way to make your team happier and more productive for better client service in the long run.
Of course, once you decide to pursue M&A, there are many other steps to take before getting to the end, including getting outside advice and counsel to help you maximize success. Understanding your firm’s current state and recognizing a few of the indicators will allow you to make important decisions on the future of your firm.
Ira S. Rosenbloom, CPA (inactive), is chief executive officer at Optimum Strategies in Spring House, Pa., and a member of the Pennsylvania CPA Journal Editorial Board. He can be reached at ira@optimumstrategies.com.
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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.