What accounting firms should consider when planning for merger or acquisition

Introduction:

In this insightful episode, join us with Bob Lewis, President of The Visionary Group, engaging in a dynamic conversation with Ganesh Ranganathan, CEO of Integra Global Solutions. Together, they delve into the intricate world of “How accounting firms can plan for succession – points to consider for mergers or acquisition.”

In this episode, you’ll cover:

• 02:12 Succession Planning and Validity: Discussion on the importance of having a valid succession plan in place for accounting firm owners and how to gauge its effectiveness.
• 09:14 The Process of Merging or Selling a Firm: Bob Lewis explains the differences between a sale and a merger in the accounting industry, highlighting the common hybrid approach.
• 10:26 Factors to Consider When Merging or Acquiring a Firm: Bob discusses what companies look for when they are interested in merging or acquiring another firm, including quality, leverage, and potential for improvement.
• 12:47 Timeline and Steps in the Merger and Acquisition Process: Bob Lewis explains that the length of the process can vary, with the shortest deal taking just over two and a half months and the longest taking four years. Due diligence and cultural alignment are important factors in the process.
• 18:24 The transition is huge right now: Ganesh & Bob discuss the current transition happening in the accounting industry due to the aging baby boomer generation and the challenge of finding ways to exit the industry.
• 20:12 The gray wave is here: Ganesh & Bob talk about the "gray wave," referring to the aging population of both accounting firms and their clients, and the potential opportunities for firms to help clients exit and sell their businesses.
• 21:31 The value of the firm and myths in mergers and acquisitions: Bob Lewis addresses myths and misinformation surrounding mergers and acquisitions for accounting firms, including the misconception that firms of the same size have the same value and the myth that partner compensation can remain the same during a buyout.

Podcast Summary:

Key Topics Discussed:

• Succession Planning: Explore the critical aspects of developing a robust succession plan and ensuring the continuity of leadership at an accounting practice.
• Mergers & Acquisitions: Gain insights into the strategies behind successful mergers and acquisitions, understanding the challenges and opportunities they present.
• Strategic Excellence: Learn from real-world examples of how strategic excellence can be achieved, driving long-term success in the ever-evolving accounting landscape.

About our Guest:

Bob Lewis is a prominent figure in the accounting world, listed among Accounting Today’s Top 100 Most Influential People. With over 25 years of exclusive support for CPA firms, he specializes in driving growth through mergers and acquisitions, succession planning, and advisory services development. Bob's expertise extends to identifying potential M&A candidates, managing deal cycles, and guiding firms in organic growth and succession planning. As a speaker and former accountant with a BS in Finance and an MBA from DePaul University, Bob brings a wealth of experience to the table.

About our Host:

Ganesh Ranganathan is the President and founder of Integra Global, a leading accounting outsourcing company. Ganesh is a seasoned executive with more than 25 years of experience in the accounting outsourcing industry.

Ganesh is committed to creating a supportive work environment that fosters creativity and innovation, and he is passionate about delivering exceptional customer service in the accounting industry.