The short answer is your firm should consider anything that strengthens and provides advantages not currently available or being experienced by your firm. A merger may or may not be a solution but the potential benefits of a merger should be analyzed, and it needs to be done with an approach of an independent third-party mindset. In this increasingly competitive market, it is very important that all potential solutions be investigated with no predetermined bias. If the purpose of a merger is clearly defined, the responsibilities and expectations definitively detailed and the advantages properly communicated to both staff and clients, a merger is a potentially powerful solution.

A merger can provide the single largest client acquisition program possible. Think about the difficulty and time spent acquiring clients one at a time. Is that productive use of staff, time or resources? A merger can produce hundreds of potential clients immediately, especially if one of the purposes for merging is cross-selling opportunities.

There is no question a merger can also minimize the effects of a firm's Achilles' heel such as succession concerns, the near-term need for large expenditures for technology, replacing retiring or incompetent staff, or the need to outsource client work because current capacity (or ability) is not available.

Visit the Merger/Merging section for information about all aspects of merging including identifying a merger candidate, due diligence, partner agreements, staff transition strategies, integration considerations and other key success components.

More Information on mergers:

• Mergers & Acquisitions of CPA Firms: Understanding the Roadblocks To Successful Deals (PART 1) by Joel Sinkin and Terrence Putney. Journal of Accountancy, c2009
• Keeping It Together: Plan the Transition to Keep Staff and Clients (PART 2) by Joel Sinkin and Terrence Putney. AICPA, c2009
• When Should a Smaller Firm Merge into A Larger Firm? Accounting Transition Advisors