Blog

Selling Your Firm in 2020 – What Makes the Cut?

Marc Rosenberg, CPA / January 13, 2020

Attractive firms in the top 50 U.S. cities are still able to find buyers offering a more than fair price. In those instances, the seller’s market is alive and well. However firms with less appeal could face some difficulty. With so many sellers flooding the market, buyers are able to cherry-pick the best firms and…

Read More...

Buyers Beware ~ Merging In Sellers: What You Need To Know

Marc Rosenberg, CPA / November 4, 2019

Dramatic changes have swept the CPA firm merger market in the past few years. Due to the avalanche of sellers in the market, as well as the changes in strategic direction many buyers are taking, buyers are being much more selective than in the past. This means that sellers who always thought that their fallback…

Read More...

Buyers Talk: Big Merger Turnoffs

Marc Rosenberg, CPA / August 12, 2019

Merger talks hitting a bump in the road? Is a potential buyer losing interest? Here’s a list of obstacles buyers I’ve worked with recently have cited. Not every buyer will consider each one of these issues a turnoff. Think of this as a universal checklist. Stickiness of the seller’s clients. Clients may be overly attached to…

Read More...

Top CPA Industry Gurus Discuss Today’s Trends

Marc Rosenberg, CPA / April 29, 2019

In the blockbuster musical Hamilton, one of the rousing songs was “I wanna be in the room where it happens, the room where it happens, the room where it happens” as a young Alexander laments his exclusion from a meeting of the founding fathers. Well, the CPA industry consulting luminaries of the New Horizons Group…

Read More...

Mergers: Experienced Buyers Talk

Marc Rosenberg, CPA / December 17, 2018

Two Chicago area MPs recently talked to our roundtable about their experiences merging in smaller firms: Shelly Casella-Dercole, MP of 8-partner Eder Casella in McHenry, IL and Jon Segal, MP of 15-partner Kutchins, Robbins & Diamond in Schaumburg, IL (both Chicago suburbs). Each has completed several mergers and is very active in the merger market….

Read More...

12 Signs Your Firm Is NOT Acquisition-Ready

Marc Rosenberg, CPA / February 5, 2018

The massive CPA firm M&A frenzy of recent years will continue for quite some time.  But future sellers beware: the market is shifting from a seller’s to a buyers’ market.  Why?  (a) Buyers are more selective (b) Many buyers are flooded with sellers to cherry-pick (c) Many buyers need time to digest their recent mergers…

Read More...

Sellers Beware- Merger Buyers Are Getting More Picky

Marc Rosenberg, CPA / February 20, 2017

Is the CPA firm merger market becoming a buyer’s market? As is so often the case, the answer is: “It depends.” For attractive firms in the top 50 U.S. cities it’s still relatively easy to find multiple buyers offering a more than fair price. In these instances the seller’s market is alive and well. However…

Read More...

Merger NDAs: Don’t Sweat the Small Stuff

Marc Rosenberg, CPA / January 9, 2017

The issue:  In a merger where each firm signs an NDA, there’s a  provision that precludes the buyer from soliciting the seller’s clients, with language similar to this: The parties agree that during discussions relative to a possible Transaction and for a period of 24 months after the conclusion thereof, neither party shall, without the…

Read More...

Merger Epidemic: Seller’s High Comp Demands

Marc Rosenberg, CPA / July 25, 2016

Sellers of small CPA firms should always ask themselves:  Taking into account both financial and non-financial aspects of the deal, are we better off selling now or continuing to work until we no longer can? If all sellers care about are the financial terms, in many cases they will maximize their cash flow by not…

Read More...

Mergers: Where Did This 1x Revenue Nonsense Come From?

Marc Rosenberg, CPA / March 21, 2016

Assume there are two small CPA firms.  Each has two partners, equal revenues, same kind of clients, same age of partners, same everything. Except partner earnings.  Firm A’s average income per partner is $200,000 and Firm B is at $400,000.  Which firm should fetch a higher sales price?  Clearly, Firm B is worth more. In…

Read More...

Get our expertise delivered to your inbox.

CATEGORIES