Test Your Succession & Equity Position

Creating Future Leadership

Succession. Lack of succession is driving CPA firm mergers. Potential leadership teams are questioning if they want to buy? Is the proposed firm value too high? Can they afford to buy in? Exiting Partner buyouts will be dependent upon that team’s ability to sustain and grow firm revenue.

CPA Firm Statistics. 

  • 45,000 CPA firms exist
  • 55% state they have a succession plan
  • 45% have no succession strategy in place
  • 85% have unfunded partner buyouts
  • 5% have fully funded buyout programs
  • 10% have some money set aside

Test Your Plan

Open Discussion. Leadership might be in agreement, but often the succession team is unaware of the details or not sure how to achieve the goals.

  • Does your succession team bring in material new work?
  • Do they know how big of a book they need to develop?
  • Where is the capital account coming from?

Danger. The real sign of potential failure is when the succession team agrees to everything, but nothing is happening. That is a sign that they are likely are not going to be there for the long term.

Partner Buy-ins

Funding. Can or will they secure a loan to deposit into the capital account? Do they expect the firm to fund the buy-in with future bonus money? If so, does the firm issue equity upfront or as it gets paid? These are often unclear issues.

Rapid Value Accelerator

Roadmap. Consider our Rapid Value Accelerator as the first step in understanding firm value and evaluating your succession potential. The objectives of the RVA are to understand the potential value and to determine what steps can be taken to build firm value, secure succession, and potentially realign how you grow.

Explore Your Growth or Transition Options

Visionary is an industry leading consultant. We know how to build the enterprise value of a firm, source & close M&A transactions, address succession needs, and become the resource to help firms grow or transition.

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