Acquiring a Firm

Moments That Matter

There are many CPA firms up for sale, and it’s not uncommon for entrepreneurial CPAs to buy into a firm instead of starting from scratch. Additionally, firms sometimes acquire other firms as part of a growth strategy into other niche markets. These transactions can be exciting times for you and your firm and you will likely see your networks growing and your revenue increasing. However, acquiring a firm is also a lot of work and opens you up to more risk.

Things to Consider

As you move forward, there are many risk factors and moving parts to consider and manage. Here are a few key considerations to make sure that you have a solid strategy in place moving forward.

What kind of clients does the firm serve? Do they align with the firm’s strategy and risk level?
What is the work culture of the firm? Does it mesh with your current firm? What changes would you need to make?
Does the firm being acquired have any outstanding claims against it?
How does the firm manage receivables and payables?
Are you acquiring a firm similar to yours or one that specializes in another field? Different areas mean different risk considerations.
Often someone is looking to be acquired because they are planning to retire. Do you have a strategy in place to handle this transition and properly manage their existing clients?

Key takeaways

Without adequate planning, you may be setting yourself up for some unexpected changes and challenges. Having a solid strategy in place can help to mitigate any conflicts that arise. Don’t lose out on revenue, risk upsetting any future and potential clients, or expose the firm to unintended risk by failing to do your due diligence.

Professional Liability

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Assistance with the associated legal and defense fees in the event of a lawsuit for errors and omissions.

Employment Practices Liability

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Coverage for any wrongful acts arising from employment-related claims to protect you, the employer.

Planning for the next step

Make sure you have a roadmap in place for the acquisition. Growing your business can be a risky endeavor, especially when things aren’t always transparent. We want to see you succeed, which is why we have gathered a few materials for you to browse through as you grow your firm.