Many accounting firms are facing a daunting challenge paying for partner retirements. Long-standing buyout agreements often aren’t calibrated for today’s demographic and market realities. This article shows how firms can assess and adjust the terms and types of buyout agreements to facilitate successful ownership transitions.
Financial and admin operations
If your firm has never used engagement letters or perhaps has not implemented them consistently, where do you start? Here are some tips to help increase the efficiency and effectiveness of this critical tool.
U.S. accounting firms are storing up equity as they prepare for a number of financial challenges over the next few years. That’s one of the findings of the 2014 National Management of an Accounting Practice (MAP) Survey, released Monday by the AICPA Private Companies Practice Section (PCPS) and the Texas
U.S. public accounting firms must tackle five challenges in their succession planning to fill the gaps left by Baby Boomer partners who have begun to retire, according to results from a Global Accounting Alliance survey.
Transitioning away from a billable-hour model can improve margins and customer relations. But it also comes with plenty of challenges. Learn how one firm made the switch.
High-functioning firms have leadership teams that assess situations, develop strategies, and make and execute decisions with relative ease, speed, and success. Others, however, function with a drag that pulls against their momentum, causing the business of leading, managing, and executing to take longer and produce less-than-stellar results. High-functioning firms seem
When is the best time to perform due diligence in the accounting firm merger process? What should each side look for? How should the parties respond to unexpected findings? Find out in the 12th and final installment of the series “CPA Firm Succession: Solidifying the Future.”
Firm leaders must weigh many considerations during the due-diligence, negotiation, and integration phases of a successful merger or acquisition.
Ask managing partners for the top reason an accounting firm merger succeeded or failed, and the most popular answer you’ll hear is culture. Learn how firms can assess and adjust for cultural differences in a merger in the 11th installment of the series “CPA Firm Succession: Solidifying the Future.”
Leaders can foster success and overcome resistance with a well-thought-out strategy for implementing any transition and for communicating their plans.
Client retention is essential to the success of an accounting firm merger. Find out how to minimize client turnover in the 10th installment of the series “CPA Firm Succession: Solidifying the Future.”
The contract that establishes owners’ terms with a firm also can play a pivotal part in whether a succession plan will succeed. Find out the key succession-related elements to address in an owners’ agreement in the ninth installment of the series “CPA Firm Succession: Solidifying the Future.”
Young talent is at the core of successful internal succession plans. How can firms identify and develop the leaders they need to replace retiring partners? Find out in the eighth installment of the series “CPA Firm Succession: Solidifying the Future.”
Accounting firm partners looking to retire need to either find an internal successor or sell their practice to an external buyer. What types of deals are possible in an external sale? Find out in the seventh installment of the series “CPA Firm Succession: Solidifying the Future.”
One of the key components of a CPA succession plan is the sale or transfer of the retiring CPA’s ownership interest. How is the value of that interest determined? In most circumstances, the value of an owner’s interest is different when selling to an external buyer than it is in
The 2012 PCPS Succession Survey, a joint project of the AICPA Private Companies Practice Section (PCPS) and Succession Institute LLC, found nearly 80% of CPA firm owners expect succession to become a major issue for their firms in the next 10 years (see “Succession Planning: The Challenge of What’s Next,”
When a longtime partner or employee retires from a CPA firm, a sense of loyalty often compels the existing partners to allow the individual to have a symbolic role at the firm. This can include a courtesy title, office space, and invitations to company soirees. While this may seem like
The best time for an accounting firm to start work on a succession plan is the day the firm is formed. Of course, most firms don’t do that. The question in many cases has become: “How quickly can I put together a succession plan and head into retirement?” The answer
Powerful forces are transforming the accounting profession in the United States. The Baby Boomers are heading into their retirement years. Baby Boomer CPAs are in charge of most U.S. accounting firms. And most U.S. accounting firms don’t have a signed succession or practice-continuation plan in place. These realities are rewriting
A contentious divorce. Clients who want to file delinquent tax returns. The new client who represented himself as an upstanding businessman but has been indicted—for the third time. After malpractice claims are resolved, CPAs often say, “I never should have taken this client.” But there is a way to help