What a Merger is and What a Merger Isn’t

What a Merger is & What a Merger isn’t

When an accounting practice “merges” with another firm…and then the founder of one of the accounting practices leaves a year or so later…that is most definitely NOT a merger. That is a buyout poorly disguised as a merger.

This masking as a merger doesn’t fool anyone either. Clients know exactly what is going on. If you believe having the seller’s name on the door will make clients stick around, you are probably setting yourself up for a big disappointment….and by masking the sale; you are beginning your relationships with your new clients with a little white-lie.

A REAL merger is where two accounting firms truly merge because there is synergy.

It’s where 1+1 is greater than 2 and there aren’t any owners running toward the exit in the near future. That has an entirely different look and feel than the disguised merger.

So why do so many accounting practice buyers, and sellers, get pulled into completing a buyout and disguising as a merger?

I believe it is because accounting practice transitions are so often misunderstood. Why do clients and staff stick around after the sale? It has very little to do with the seller’s actions and almost everything to do with the buyer’s actions. It’s all about service. It really is that simple. Deal structure matters. To learn more, please read the importance of deal structure in the sale of accounting practices.

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