Posts by Terry Putney
What’s the Multiple?
Valuations in the sale of accounting firms have declined in the past few years as more and more Baby Boomer practitioners seek an external solution to their succession needs. The market is behaving in a standard way to supply and demand. In today’s market what is the right multiple if you are buying or selling…
Read MoreBuying Out Retiring Partners
Surveys tell us a huge percent of accounting firms are facing the prospects of partners retiring in the near future. In most cases, this is going to lead to the need for the firm to buy the equity of the retiring partner, usually in the form of paying out capital and retirement or deferred compensation…
Read MorePreparing Your Firm for an Upstream Merger or Sale
With all of the merger activity in the accounting profession today, there is a good chance your firm has been approached to consider an upstream merger or sale. Perhaps you are seeking that as a way to address strategic needs your firm has such as the pressure to provide succession for soon-to-retire partners. Keep in…
Read MorePreparing Your Firm to Grow Through M & A
We find firms seeking to grow using mergers and acquisitions often start the process with too little advance preparation. This can lead to many false starts. In the worst case scenarios it can lead to: 1) failing to close a deal your firm would have benefitted from or 2) a failed merger. This blog summarizes…
Read MoreTying a Transition Plan for Retiring Partners to Your Partner Agreement
The valuation used to determine the terms for paying retired partners will never make sense unless you assume the firm will at least perform as well as it did before the partner retired. Some firms can never get comfortable with the concept of fixing the obligation to retired partners at the date of retirement. The…
Read MoreBridging the Gap-The Conclusion
On behalf of the members of the CPA Consultants’ Alliance, I hope you have enjoyed and benefited from our 2015 blog series focused on the central theme of Bridging the Gap-Strengthening the Connection Between Current and Emerging Leaders. The membership of the CPA Consultants’ Alliance is comprised of many of the top thought leaders in…
Read MoreBridging the Gap: Staying Independent vs. Selling or Merging
Most of the firms we work with on succession planning start off with a strong preference to remain independent, and not sell or merge in order to address the need to payoff and replace retiring owners. The common reasons we are given for this inclination are- Control-Most owners of small to mid-sized CPA firms like…
Read MoreBridging the Gap
Welcome to the 2015 blog series produced by the thought leaders that comprise the membership of the CPA Consultants’ Alliance (CPACA). This is the first of a series of 15 blogs that will be published by CPACA around the central theme of Bridging the Gap-Strengthening the Connection Between Current and Emerging Leaders. At our annual…
Read MoreThe First Step in Succession Planning-Assess Your Need for Replacement Partners
The first step in developing a plan for the internal succession of your partners is to develop an understanding of the nature and timing of their replacement. This will provide you with what you need to know for acquiring the necessary talent and developing viable successors. Start with when each partner is likely to relinquish…
Read MoreCan You Afford to Buy-out the Retiring Partners of Your Firm?
Many firms are struggling with the prospects of paying retirement buyout payments for their senior partners who will be retiring in the next few years. In some cases, several partners will be receiving retirement buyouts simultaneously. The financial burden can seem daunting. As we have emphasized in earlier blogs, make sure you first have the…
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