Mergers: The questions to be answered
Jeremy Kitchin outlines the key considerations for firms considering undergoing a merger.
Most accounting firms never do more than one merger in their lifetime, so it's not unusual for the merger to fail. The following checklist will help partners/directors with their review before merging with or acquiring another firm. All of them should be considered before you start down the merger path. Know what your non-negotiable items are and stick with them. It’s also vital to pinpoint your primary reason for entering into a merger – is it to acquire talent? Increase profits? Expand services? Or expand geographic coverage?
Key considerations financial and human
How will this merger help you achieve your strategic vision? You need to give careful consideration to this question. If you can’t answer it, there is no reason for the merger. And the human side of the process is almost important in making the process work.
The full article sets out a range of questions you need to ask yourself on both topics and suggests some key points to set you thinking about the risks and returns of merging with another accountancy firm.