2019: why small firms shun mergers

leadership and “business-getting skills” emphasized for managers.

by rita keller
the rosenberg survey: national study of cpa firm statistics

when considering a succession plan that involves merging up, some very well-managed and profitable smaller firms actually feel like they are taking a step backward.

more from the map survey: 2019: using m&a to launch consulting | 2019: client service moves to fore | 2019: shifts in hiring & office space
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they view the larger, acquiring firm as having multiple partners who seem complacent and unwilling to invest in digital tools that will take the firm into the future. decision-making is way too slow.

the biggest issue remains the challenge of keeping up with technology. i continue to be disappointed at the number of firms i talk to that are not even truly paperless yet. all of the hype from state societies and the aicpa about disruption, artificial intelligence, etc. has not begun to sink in. below the top-tier firms, the messages are not being received or acknowledged.

i am hearing from a growing number of firms about the need to provide their manager-level team members with more training on leadership and especially on “business-getting” skills. it is as if senior partners have almost given up on trying to coerce the current partner group into improving their marketing and sales skills and have now focused time and energy on future owners at the manager level.

some firms have also realized that getting their managers involved in some sort of cpa profession networking group will broaden their understanding of the profession. they are doing this through their state society, aicpa conferences and other training sources.

another issue i am hearing more about is the fear that acquiring firms are becoming more and more selective when it comes to acquiring smaller firms. practitioners worry if their firm will be efficient and profitable enough to attract the best acquirers. they have to do more than put lipstick on a pig.