{"id":96861,"date":"2022-05-12t18:00:17","date_gmt":"2022-05-12t22:00:17","guid":{"rendered":"\/\/www.g005e.com\/?p=96861"},"modified":"2022-12-22t00:40:15","modified_gmt":"2022-12-22t05:40:15","slug":"what-to-do-before-ma-negotiations-begin","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/05\/12\/what-to-do-before-ma-negotiations-begin\/","title":{"rendered":"merger? the 100 data points you need first"},"content":{"rendered":"

\"meeting<\/a>the finer points of getting to know one another.<\/strong><\/p>\n

by marc rosenberg<\/i>
\ncpa firm mergers: new and updated<\/i><\/a><\/p>\n

before negotiations begin, it is very helpful for merger partners to prepare a one-page, written description of their firms. this advice is for both the buyer and the seller.<\/p>\n

more: <\/b>one times fees isn\u2019t the only way<\/a> | thinking merger? first ask why.<\/a> | why do you want to merge? be honest.<\/a> | four reasons to fear a merger<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

at the risk of offending some of you, we have found that when firms initially describe themselves, the person doing the listening does a terrible job taking notes. none of our memories are as good as we think they are. because in almost all cases, each firm will soon be describing the other to their partners, it\u2019s always best to follow up the oral description of your firm with something in writing.<\/p>\n

what follows is:<\/p>\n

    \n
  1. what the written firm description should include (12 items)<\/li>\n
  2. get-to-know-you meeting between buyer and seller (the agenda)<\/li>\n
  3. sample firm description<\/li>\n
  4. the get-to-know-you meeting cheat sheet<\/li>\n
  5. key questions for the first meeting (43 items)<\/li>\n
  6. 20 questions to ask right away<\/li>\n
  7. the data needed to evaluate a merger<\/li>\n
  8. financial and operating data to exchange (58 items)<\/li>\n
  9. client list (with 9 items for each)<\/li>\n<\/ol>\n

    what the written firm description should include:<\/h3>\n
      \n
    1. generic name of the firm (i.e., north suburban chicago firm)<\/li>\n
    2. why the firm wants to merge<\/li>\n
    3. annual revenue<\/li>\n
    4. number of partners and their ages<\/li>\n
    5. personnel breakdown: partners, professional staff and admin staff, all totaled, in full-time equivalents<\/li>\n
    6. a rough breakdown of services: audit, accounting, tax, etc.<\/li>\n
    7. niches and specialties, if any<\/li>\n
    8. sellers\u2019 office lease situation<\/li>\n
    9. sellers\u2019 future work preferences<\/li>\n
    10. whether a one- or two-stage merger is sought<\/li>\n
    11. technology and applications used<\/li>\n
    12. other pertinent data, such as partner billing rates and what software is used<\/li>\n<\/ol>\n

      get-to-know-you meeting between buyer and seller<\/h3>\n

      all merger discussions have to begin somewhere. after merger candidates have been identified, the two firms must formally meet each other, get acquainted and decide if they want to get serious.<\/p>\n

      at this first meeting, everything is confidential and informal. no exchange of financial statements. the two parties simply spend an hour or two \u2013 you guessed it \u2013 getting to know each other. many firms like to convene this meeting at a restaurant to give the encounter an air of informality and sociability. other firms like to do this in the larger firm\u2019s office so that the smaller firm can get a house tour. i strongly recommend the latter.<\/p>\n

      the organized chap that i am, i always have a cheat sheet to get the conversation going and make sure the firms address the basics. but my goal as a good facilitator is to shut up as much as possible and get the two firms to ask the questions and talk to each other.<\/p>\n

      no one can or should try to legislate how this first meeting is conducted. it should be free, easy and natural. however, just to give you an idea, i also provide a cheat sheet i use.<\/p>\n

      sample firm description:<\/h3>\n

      north suburban cpa firm looking to merge up<\/strong><\/p>\n

      the firm has two partners, 62 and 57, with $2.1 million in revenue. excellent profitability. they want to merge up as a succession planning strategy. though they want to continue working for several years, they feel that now is a good time to start the process. they have reliable, capable staff, but none has the potential to become partners.<\/p>\n

      they are looking for a two-stage merger\/sale.<\/p>\n

      service breakdown:<\/strong><\/p>\n