It is a unique time for financial and accounting firms, as small firms are looking to be acquired to expand their range, and larger firms are looking to acquire smaller firms to expand service offerings. Combined with an aging management, it is now a buyer’s market. Both buyers and sellers should carefully evaluate the other party to ensure the long-term goals are synchronized. Careful scrutiny can lead to higher quality partnerships, and avoid board/employee conflicts later on in the merger.
Key Takeaways:
- It is a buyer’s market in the accounting business. There are more sellers than buyers right now.
- Just because it is a buyer’s market, it doesn’t mean that the buyer can seriously low=ball the offer to the company. The buyer must reassure the current partners that they can deliver what they say.
- The seller can’t just take any offer, they must analyze what is best for the company and the employees.
“The volume and pace of CPA firm M&A over the past 10 years, along with the current age demographics of firm owners, has created what appears to be a buyer’s market”
