296 search results for "by marc rosenberg"

early data exchange vital to evaluate a merger

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three possible outcomes from trading numbers early.

by marc rosenberg
cpa firm mergers

i have always been a big believer in the buyer and seller exchanging financial and operating information as early in the process as possible.

more on cpa firm mergers: deciphering the current state of the cpa firm merger market | the law of attraction: 15 ways to romance a merger partner | the 14 keys to a successful merger | mergers: 11 lessons from done deals | the 21 steps in every merger deal | today’s 15 essential deal points in accounting firm mergers

numbers aren’t everything, but they do speak volumes. the data enable each firm to gain an understanding of the other in a manner that is not always possible in conversation.

the data is also a good way to corroborate things that are said verbally. here are some examples: read more →

cpa firm mergers: 18 categories of data to divulge — carefully

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dices cubes with the words sell buy on financial downtrend chartby marc rosenberg
cpa firm mergers

think of it as a second date. the first meeting was simply a “getting-to-know-you” encounter. but now the prospective merger participants, buyer and seller, are getting serious. they need to take the next step and exchange key performance indicators and financial and operating metrics.

there are at least 18 categories of data that need to be considered, each with it’s own peculiar in’s and out’s.
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before negotiations begin: 18-item checklist for a first meeting

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the “getting-to-know-you” stage for prospective buyer and seller

by marc rosenberg
cpa firm mergers

all merger discussions have to begin somewhere. after merger candidates have been identified, there obviously needs to be an initial meeting for the two firms to get acquainted.

everything is confidential and informal. no exchange of financial statements.  the two parties simply spend an hour or two – you guessed it – getting to know each other.

many firms like to convene this meeting over breakfast or lunch because meeting at a restaurant gives the encounter an air of informality and sociability.  other firms like to do this in the larger firm’s office so that the smaller firm can get a “house tour.” read more →

6 reasons cpa firms fail at succession planning

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plus: making the math work.

by marc rosenberg
retirements & buyouts

why are cpa firms deficient at succession planning?

it is abundantly clear that cpa firms have succession planning challenges. partners overwhelmingly prefer the exit strategy of passing on the firm to younger partners vs. merging out of existence. but history shows that the vast majority fail at moving their firms into the next generation. what holds them back?

the answer lies in the classic pogo cartoon line: “we’ve seen the enemy and the enemy is us.” read more →

6 factors in valuing total goodwill of a cpa firm

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cpa firm partner retirement artvaluing a cpa firm for partner retirement purposes is much different than a valuation for merger purposes.

by marc rosenberg
retirements & buyouts

profitable, attractive firms, generally under $2 million, sold in a market with many potential buyers, will often fetch 110 percent to 150 percent of fees.

if this is the case, why do cpa firms value goodwill for retirement purposes at no more than 100 percent of fees and usually, 80 or 90 percent of fees? here are six good reasons why:

read more →

when you’ve retired, how do you get your money?

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money falling from the sky; moneyon white9 factors that ensure retirement plans will pay off.

by marc rosenberg
retirements & buyouts

when a partner group crafts their firm’s partner retirement plan, they are hopeful that the plan will play an important role in their financial futures. they are guardedly optimistic that their buyouts will be realized.

but the path toward the retirement payday is a perilous one. many actions are necessary and a number of obstacles must be overcome for a firm’s partner retirement plan to pay off. read more →

deciphering the current state of the cpa firm merger market

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by marc rosenberg
cpa firm mergers

with 80 percent of first-generation firms never turning over to a second generation of owners, it’s no wonder that merger mania continues unabated. each year sees increased merger activity over the one previous.

“merger mania” is particularly prevalent among the top 10 to 25 firms in the largest 75 markets in the u.s. and canada, partly due to the “new normal” – an economy that remains too sluggish to satisfy the ambitious growth targets of these top performers. but acquiring talent and niches is equally as important a reason for mergers to these larger firms, as is increased revenue.

sellers, however, remain hesitant.

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