What makes a merger worthwhile? Why consider a transaction as a strategic course of action? The reasons can vary, but often boil down to:


  • Acquiring talent. The battle for talent is never ending and the best talent does not only reside within large organizations. Some exceptional technical, business development and client management leaders can be found in firms of all sizes. The ability to unlock that talent is often the missing ingredient in optimizing an individual’s promise.

  • Gaining market share. A merger transaction can expand an existing core competency either in a niche or service line. The clients gained in a merger can serve to expand an area of specialization, stabilize a failing one or catapult the acquiring firm into a new one of greater relevance.


  • Tapping into new referral sources. No one organization has a monopoly on referral sources. When a larger firm merges a smaller organization into its operations, the benefits of gaining access to new referral sources is twofold. For the larger firm the opportunity to gain access to fresh sources can obviously lead to new market opportunities. For the smaller firm, the ability to leverage existing contacts can often be overlooked. In many instances a referral source may be unable to refer business to a small firm, fearing that an inability to effectively serve a client may be present. However, the combination of a larger firm with the smaller organization can change the paradigm completely.


  • Geographic expansion. The desire to expand into new territories may be a function of an examination of market opportunities. These opportunities may take the shape of examining existing niches for growth or stabilizing a failing niche which has been impacted by changing market dynamics in a pre-existing geography.


  • Access to Deeper Resources. The demand from clients for access to knowledge capital and connections to centers of influence has become an increasingly meaningful metric by which they gauge the value of their current accounting firm. The depth of resources provided by a larger organization can enhance client satisfaction and retention in profound ways.


  • An Exit Strategy. The ability to secure valuable retirement benefits, without the immediate need to “sell” a practice can provide a solution to partners of a firm who seek to continue to serve clients and contribute in a significant manner in a new organization. For those firms or professionals who seek to sell the practice for an immediate benefit, creative solutions exist to ensure that an effective transaction can be garnered for the mutual benefit of a buyer and a seller.