The Key to Merger Success--Client Retention

Source: Public Practice Newsletter

In this article, Joel Sinkin, president of Accounting Transition Advisors, LLC, says that the key to successful mergers or acquisitions is the retention of clients. He further says:

• If the successor firm makes major changes in fees or the nature of the services, client retention will suffer. If changes are to be made, they should be phased in gradually over time. Examples of offensive changes include:
  • Regular personal meetings are terminated in favor of sending files to the office.
  • The client is abruptly transitioned from a partner to a non-partner.
• Clients must believe the transaction is good for them. Tell them why it is. Tell the major clients in person. They are concerned that the people they trust will no longer serve them, that their fees will increase, and that the offices may move to an inconvenient place.
• Selling partners must transition their clients to successor partners. Too often they prevent the client from developing a relationship of trust with the new partners.

To read the entire article, click here, and select "THE VALUE OF A SMOOTH TRANSITION IN TOUGH TIMES" from Volume 3, Issue 2 (Spring 2009).

From Public Practice Newsletter, Missouri Society of CPAs, Practice Management Resources, http://www.mocpa.org/Content/22677.aspx.