The Trend Toward Acquiring Niche Practices

Source: Practical Accountant

According to Stephen Weinstein, a practice management consultant in Connecticut, larger firms, especially the top 100, will increasingly acquire niche practices of smaller firms. Smaller firms that have developed successful niche practices may be finding it difficult to staff and manage them. Merging into a larger firm is an attractive option for these firms especially when the partner in charge of the niche is not getting the necessary support from the firm. The acquiring firm has the opportunity to become dominant, or more dominant, in the niche, and possibly to expand into new markets. For example, a Bay Area firm contemplating a new office in San Francisco was able to achieve that goal by purchasing the health care practice of a San Francisco firm.

From Practical Accountant, June 2005. Click on the following link for the complete article:
http://www.webcpa.com/article.cfm?articleid=12992&;pg=pracacc.