planning

St. Louis, Missouri, USA skyline at sunset, taken from the water.

Keys to Successful Transition Planning

A CPA firm, just like any of our corporate clients, is a business first and foremost. Like any thriving business, succession planning considerations should be a component of overall strategic planning. For transition plans to be successful, the process should result in a “win-win” situation for all involved. A good succession plan depends on an owner or owners who are willing to relinquish control, decision making, and compensation/net income to the successors according to a structure that works for everyone’s mutual goals. Current ownership needs to identify key leaders within the firm who are ready and willing to buy-in under the same structure and time frame. Transition plans can be accomplished through earn-outs, bank or owner financing, or some combination. Current owners, who are often founding owners, can exit the practice as they desire under a planned succession strategy.… Read More