{"id":97882,"date":"2022-05-26t18:00:20","date_gmt":"2022-05-26t22:00:20","guid":{"rendered":"\/\/www.g005e.com\/?p=97882"},"modified":"2022-12-22t00:40:04","modified_gmt":"2022-12-22t05:40:04","slug":"thirteen-ways-to-woo-potential-firm-buyers","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/05\/26\/thirteen-ways-to-woo-potential-firm-buyers\/","title":{"rendered":"thirteen ways to woo potential firm buyers"},"content":{"rendered":"

\"man<\/a>plus how sellers should assess them.<\/strong><\/p>\n

by marc rosenberg<\/i>
\ncpa firm mergers: your complete guide<\/i><\/a>
\n[now updated and expanded]<\/i><\/a><\/p>\n

once sellers have created a list of firms they will consider as a merger partner, the first step is often to talk by phone or video call with the buyer and ask basic questions to determine if a get-to-know-you meeting makes sense.<\/p>\n

more: <\/b>13 reasons to merge up<\/a> | merger? the 100 data points you need first<\/a> | 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

the forms below are good cheat sheets.
\n
\n\u00a0<\/strong><\/p>\n\n\n\n\n\n\n\n\n
\u00a0date<\/td>\n<\/td>\n<\/tr>\n
\u00a0contact name<\/td>\n<\/td>\n<\/tr>\n
\u00a0firm name<\/td>\n<\/td>\n<\/tr>\n
\u00a0address<\/td>\n<\/td>\n<\/tr>\n
\u00a0telephone<\/td>\n<\/td>\n<\/tr>\n
\u00a0email<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/strong><\/p>\n

basic data<\/strong><\/p>\n\n\n\n\n\n\n\n\n
\u00a0annual fees<\/td>\n<\/td>\n<\/tr>\n
\u00a0number of partners\/ professional staff\/ total fte<\/td>\n<\/td>\n<\/tr>\n
\u00a0ages of partners<\/td>\n<\/td>\n<\/tr>\n
\u00a0practice breakdown<\/p>\n
    \n
  • \u00a0a&a<\/li>\n
  • \u00a0tax<\/li>\n
  • \u00a0consulting<\/li>\n<\/ul>\n<\/td>\n
<\/td>\n<\/tr>\n
\u00a0specialties or niches<\/td>\n<\/td>\n<\/tr>\n
\u00a0partner billing rates<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/strong><\/p>\n

screening questions<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a01. does the buyer want to merge in smaller firms?\u00a0 why? what does the buyer hope to get out of it?<\/td>\n<\/td>\n<\/tr>\n
\u00a02. what are buyer\u2019s parameters for a desirable seller? does the seller qualify?<\/td>\n<\/td>\n<\/tr>\n
\u00a03. sellers\u2019 partners are all generalists. is this ok?<\/td>\n<\/td>\n<\/tr>\n
\u00a04. seller does not have a specialty. is this ok?<\/td>\n<\/td>\n<\/tr>\n
\u00a05. sellers\u2019 partners want to work until age _____. is this ok?<\/td>\n<\/td>\n<\/tr>\n
\u00a06. the seller struggles with attracting and retaining good, young staff. it needs better access to labor. can the buyer supply it?<\/td>\n<\/td>\n<\/tr>\n
\u00a07. how many mergers has the buyer done in the last five years? how did they work out?<\/td>\n<\/td>\n<\/tr>\n
\u00a08. average partner billable hours for the buyer<\/td>\n<\/td>\n<\/tr>\n
\u00a09. tolerance of buyer for seller\u2019s partners working heavy billable hours<\/td>\n<\/td>\n<\/tr>\n
\u00a010. software used for tax prep, accounting, other<\/td>\n<\/td>\n<\/tr>\n
\u00a011. (for buyers who are not located in the seller\u2019s city) why is the buyer interested in a firm outside of their current geographic market?<\/td>\n<\/td>\n<\/tr>\n
\u00a012. is the buyer willing to pay at least the market rate for the seller?<\/td>\n<\/td>\n<\/tr>\n
\u00a013. would the buyer be willing to meet in person informally for a get-to-know-you meeting?<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

how sellers should assess buyers<\/h3>\n

the seller should make an objective, realistic assessment as to whether or not merging upward is a good business decision. every seller evaluating the feasibility of merging should consider these questions in as much depth as possible:<\/p>\n

    \n
  1. a larger firm has openly expressed interest in merging the seller in. does the seller find the deal attractive? why, specifically?<\/li>\n
  2. the seller feels it is a good firm that has been limited by its size from becoming a great<\/strong> firm. will tapping into the resources of the larger firm enable the seller to better realize its potential? how will this actually play out?<\/li>\n
  3. will the retirement of one or more key partners at the buyer over the next few years threaten the buyer\u2019s continued success?<\/li>\n
  4. will the retirement obligation to one dominating partner be so large that the buyer cannot afford the payments?<\/li>\n
  5. are the ages of the buyer\u2019s partners clustered together such that they won’t be able to afford to pay retirement benefits to all the partners at the same time?<\/li>\n
  6. are the buyer\u2019s younger partners capable of running the firm after the older partners retire?<\/li>\n
  7. are the partners of the buyer willing and able to write retirement checks to the seller\u2019s partners?<\/li>\n
  8. does the buyer have staff with partner potential? has the buyer demonstrated skills at developing staff and helping them grow?<\/li>\n
  9. to the extent the seller struggles with firm management, growth, finding staff, retaining staff, developing partner-potentials and\/or profitability, does the buyer truly have the management expertise to fix these problems?<\/li>\n
  10. the seller\u2019s partner group is not cohesive, and there is no accountability. is the buyer willing and able to whip these partners into shape?<\/li>\n
  11. one or more key partners at the seller have an urgent need to leave, for health or other reasons. is an exit strategy in place?<\/li>\n<\/ol>\n

    how to make your firm attractive to buyers<\/h3>\n
      \n
    1. have a niche or a specialty. some buyers are interested in niches they currently have, while others prefer specialties they don’t yet have. generalist firms are less attractive, but because most small and medium-size firms are generalists, it\u2019s not usually not a huge detriment.<\/li>\n
    2. a major reason buyers look to merge with sellers is to buy talent, at both the partner and staff levels. if your firm has a number of bright, young, experienced staff, you will be much more attractive than firms whose partners do everything, are close to retirement and have never done well developing people.<\/li>\n
    3. have nonsolicitation agreements in place, with both partners and staff members.<\/li>\n
    4. the better your performance in key areas such as profitability, billing rate, productivity and realization, the more attractive you will be. two kinds of buyers look to merge in smaller firms:<\/li>\n<\/ol>\n