Keys to. Clients and Staff through a Merger or Acquisition. Joel Sinkin, President Transition Advisors

Transcription

1 Keys to Transitioning/Retaining Clients and Staff through a Merger or Acquisition. Joel Sinkin, President Transition Advisors

2 Transition Advisors, LLC A National Consulting Firm working exclusively with accounting professionals on issues related to ownership transition

3 Transition Advisors, LLC Partners and Associates Terrence Putney CEO Joel Sinkin President Bill Carlino Managing Director National Consulting Services

4 Transition Advisors, LLC Partners and Associates Mark Basinski Russ Best / Nancy Egan

5 Transition Advisors, LLC Partners and Associates Peggy Tyers Marcia Miller Mike Farinelli Kay Conklin

6 If there are 50 things you need to think about in a transaction. the smartest of us will think of only 35

7 The Transition.. Client The Transition.. Communications Client Communications Roles for new staff members Roles for new staff members Specialization

8 Choosing the Right Successor Do you know why the other firm wants to merge?. the staffing situation / excess capacity?. their physical space requirements?. current technology and equipment?. financial strength or issues? Bigger is not always better!

9 Choosing the Right Successor Specialties you offer Size of successor, retention rates and excess capacity Location(s) Billing rates / professional credentials Culture: This includes the difference between brand loyal clients and partner loyal clients; IT Internal versus external successors

10 Choosing the Right Successor General chemistry between the parties Continuity/Culture of relationships will help retain clients Capacity to take over the roles being diminished A good deal is a fair deal Remember, it s the package, not the individual variables

11 Transitioning Staff What are the Staff s fears? Compensation Security Role Changing CHANGE IS A DIRTY WORD. THE EMPHASIS NEEDS TO BE ON CONTINUITY. NOT THE LOSS OF, BUT THE GAIN OF..

12 Who to keep Transitioning Staff Seller/Mergee perspective Loyalty Client retention Client contact Successor firm Chargeable hours Client contact Limit changes

13 Transitioning Staff Who to tell, when and what to say? Very few if any are told prior to closing. Risks Firm wide meeting Group meeting Creation of mentoring teams Creating clear goals that are measurable Employment agreements. What s reasonable? Overcoming compensation differences Retention: who is higher priority to retain at least through the initial transition

14 Transitioning Clients Who gets a phone call Who gets a visit Who gets a letter Firm Name options CHANGE IS A DIRTY WORD. THE EMPHASIS NEEDS TO BE ON CONTINUITY. NOT THE LOSS OF, BUT THE GAIN OF..

15 Transitioning Clients What are the Client s fears? Is the Partner/Owner I trust still there? Is it going to cost me more money? Do I have to travel far to meet with my new accounting firm? Is the staff I am accustomed to working with part of the successor firm? ITS ALL PACKAGING! CHANGE IS A DIRTY WORD. THE EMPHASIS NEEDS TO BE ON CONTINUITY. NOT THE LOSS OF, BUT THE GAIN OF..

16 Transitioning Clients Messages to send Age of specialization How phone is answered Same voices where possible on voice mail, etc. Parties Teaching sessions: lecturers from new team The announcement letter Envelope Timing Overcoming objections prior to receiving them

17 Transitioning Clients How Long it Takes How often you see clients in person How many hours a year are you in front of clients Are they brand loyal or Partner loyal How loyal are your clients

18 Transitioning Your Practice Without giving up Control Income or Your Autonomy While Maximizing its Value: The Two Stage Deal

19 Two Stage Deal

20 Two Stage Deal

21 Two Stage Deal

22 Two Stage Deals

23 Two Stage Deal

24 Two Stage Deal

25 Don t Procrastinate Takes time to. Find right successor. Agree on terms and structure. Complete deal process. Integrate firms. Transition relationships You can start too late but never too soon

26 For More Information Please visit our website for resources including FREE reports, whitepapers and case studies. Joel Sinkin