M&A: It’s a trend that’s not going away (if anything, it’s picking up), and it may be a strategy you’re thinking about for your own firm. Maybe you want to expand into a new geographic market, expand a particular service or industry niche, retire and don’t have a bench to take over the business, identify a new group of talent or client base, or diversify your offerings with a new “nontraditional” service. No matter the reason, M&A deals often are done to help solve a specific need or achieve a particular goal.

But there’s a lot that must happen before deciding to go down the merger or acquisition road. Having led many merger and acquisition strategies for small, medium, and large CPA firms, including my own when Dixon Hughes and Goodman & Co. merged in 2011 it’s not something you do alone.

An experienced third-party advisor in situations such as these can help you look at things from a different perspective. As an outsider, I pull from my own M&A experience with professionals and firms of all shapes and sizes to combine a high-level understanding with a zeroed-in focus on your particular situation to devise a roadmap for your future.

I recently helped a firm begin its M&A process, which involved gathering internal stakeholder input. Then we dug deep to identify their needs, wants, and goals – even if a merger or acquisition was a smart move and we viewed those responses through the lens of practice areas, geographies, etc. We did so by asking questions such as:

  • Is it in the firm’s best interest to execute a merger or acquisition?
  • How important is title and position to you?
  • Do you have a preference on the size of a merged or acquired firm?
  • When would you like to see a merger or acquisition completed (announced publicly)?
  • What level of leadership should firm members have in a new organization (board, service line or industry leader, etc.)?
  • Any technology, infrastructure, or processes you want to be considered in a merger or acquisition?

These questions are just the tip of the iceberg. In fact, partner alignment and agreement are just the beginning of determining if a merger or acquisition is where you want to go.

Merging in or acquiring a new firm requires careful consideration of how it will impact your entire team, not just those in leadership positions. What roles does each department play when deciding which direction to go? Who should have input into these discussions, and how much say does each individual player get before coming together as one big family under common goals?

It should come as no surprise that one of, if not the most important, factors I’ll encourage you to focus on is the intersection of performance and culture.

Your staff – and clients’ – satisfaction, retention, and loyalty are vital to reaping the benefits of an M&A to support and achieve your goals.

The M&A process can often be long and time-consuming. It can take up to three years – or more – from identifying if this is what you want, through discovery and negotiations, then navigating the post-M&A marriage of operations, service, and branding.

You don’t have to do this alone (nor should you, as you still have a firm to run that takes a lot of your time!), but an independent third party can help alleviate some of the stress. And even if it’s just one section, a few phases, or the whole adventure – you’ll want someone on board who knows what they’re doing!

From initial due diligence to post-merger integration, it’s hard to know what will work for you. How can I help you identify if an M&A is best for your firm? Let’s talk through the process step by step and set up a successful deal!