There are several ways a company can expand and grow its market share. For example, it can hire new employees or purchase a whole firm. Vertical integration is also common now; a company dissatisfied with outsourcing or wanting to dominate a marketplace may start buying up suppliers. CEOs and COO’s rely on CPAs to help them make these decisions. But what if a company wants to acquire CPAs. There are several concepts and tools, which would be helpful to such executives in Phoenix.
Alexander Schaap, who serves as a temporary CFO and personally helps Arizona companies handle acquisitions, has this advice. “There are three important considerations when looking to broker a deal. Is the customer base large and diverse enough to sustain future business? Are there any hidden skeletons that would affect future profitability? Have you considered culture-related issues (e.g., merging management teams, conflicts between different corporate cultures, etc.) that must be dealt with post-acquisition?”
Many companies do not even know how to find companies to consider; most are reactive, waiting for news about a firm’s availability to appear for sale in the Phoenix Business Journal or Capitol Times, and then jumping at it. There is a new business tool available that can help companies be more proactive in their search.
Berkshire Business Sales & Acquisitions is a Phoenix boutique business consultancy in Chandler, AZ, specializing in the sale of accounting, bookkeeping, and CPA practices. With its new product, Berkshire can geographically target companies segmented by revenue and geography, and help buyers look appealing to potential sellers. The Berkshire team handles all direct mail, follow-up telemarketing, and subsequent meetings with any potential sellers.
“We can organize and administer the search in a way that the impact on their time is minimized and the chances of a successful acquisition and transition is maximized,” says Ryan Gipple, Principal of Berkshire.
Since the recession in 2007, there has been a flurry of mergers and acquisitions, as some companies give up and sell out, and others seek to absorb current competitors. But these are complex activities that can sink a healthy firm if not handled properly. Executives, even those currently running CPA firms, should seek out objective advice, consultation and tools from other local experts before deciding to acquire, much less launch the process, of merging with or purchasing other firms.