The key measure of a deal’s success is client retention. To plan for the highest level of retention possible, start by considering why you have your clients. Most are unaware of your competency level. You are their most trusted business adviser and this trust can be taken advantage of, in a professional and ethical way, and should not be feared.
Continuity: The two major keys to a successful transition plan are maximizing continuity and focusing on what clients’ gain, not what they lose. Change is a daunting and scary concept to most people. Make this the addition of - never the loss of.
There are two types of changes: “change behind the door” and “change in front of the door.” The types of changes clients don't notice are behind the door changes, such as switching software. Changes they will see and feel include things such as telling them they will no longer be visited by the partner but now put their information on the cloud and occasionally be seen by staff….
Clients will accept the idea of the merger or acquisition if they believe it is in their own interest. Be sure to explain the benefits to them, including the opportunity for even better service. The major concerns of most clients when notified of a merger are:
· Are the Principals I trust still there?
· Will this cost me more money?
· Is the practice’s location still convenient to me?
· Is the same staff that works on my account still there?
Make sure your transition plan overcomes these 4 critical concerns. One of the best steps the seller can take is to convey the message that there is a value added in working with the new owners. Most of your clients trust you and if you lead them down that path, they will follow.
Click on this link below for a more detailed and complete view of transition strategies that help you retain your clients and staff published by the Journal of Accountancy.
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