Pitfalls to Avoid on the Road to a Merger

Source: Journal of Accountancy 

Authors Joel Sinkin and Terrence Putney discuss the many roadblocks to avoid in order to complete a successful merger. They include:

Planning roadblocks

• Ill-defined goals
• Insufficient information

 Deal roadblocks

• Inflexibility regarding firm name
• Incomplete or nonexistent partner agreements
• Entrenched lease and location issues
• Inequitable or inadequate equity related to partner admissions

Process roadblocks

• Unnecessary and avoidable delays
• Painfully inefficient piecemeal negotiations
• Inappropriate term demands during final contract draft negotiations
• Insensitivity to emotional factors

 For the complete article, read “Roadblocks to avoid in accounting firm M&A.”

From Journal of Accountancy, September 1, 2015, www.journalofaccountancy.com/Issues/2015/sep.