2011 M&A Activity Ends with a Flourish

Driven by Growth and Succession Strategies

In the last month of 2011, there were five announced deals, the second most of any month in the year.  This included some very well known firms, such as EisnerLubin and Pustorino Puglisi.  

As mentioned last month,  more and more, we are seeing mergers that are not simply the result of succession issues, but rather to create a more robust platform for growth.

This was surely the case with the Eisner and Pustorino mergers as both firms have a cadre of younger partners, good profitability and some nice market niches.  Sounds good, right?  Well not quite, as what both firms realized over time is that they couldn’t maintain that growth because they couldn’t compete with larger firms for next generation talent and potential merger candidates.  As hard as the decision to merge is and was, the desire for stronger long-term growth prevailed.

The opportunities for CPAs continue to be good, in my opinion.  However, as a number of managing partners pointed out in a provocatively titled article, “Bring it on” in Accounting Today, there is much to deal with including pricing/discounting, an aging partner group, less premium work, partner accountability and regulatory issues.  That’s a lot to handle, but that is the environment we are living with and will be for quite some time.

Bring it on indeed, embrace and attack the issues.

Best wishes for 2012!

If you’d like to discuss this or any other issues related to your practice or career, please don’t hesitate to contact me: My direct line is (212) 490-9700. Or email me .(JavaScript must be enabled to view this email address).  Absolute confidentiality always assured.

Robert S. Fligel, CPA

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