What Does Success Look Like?

Now I realize that the above question is highly subjective in nature and not something that many can detail on the fly.

Obviously success can mean different things to different people. Someone may define success via accumulated wealth and possessions, while others may take a more philosophical or holistic view defining success as forging strong relationships and family bonds.

But how does a CPA firm define success when mulling a merger with another practice? You would be amazed, or perhaps you wouldn’t, as to how many practitioners eager to enter into a merger have any vision beyond, say, the vision of suddenly becoming a larger firm as to define success. 

Sure they want to grow revenues, perhaps enter into a new client vertical or even establish a footprint in a new geographic market. But beyond outlining bullet points on an iPad or poster board, it’s surprising how many firms elbow their way into a union and then like a disappointed newlywed, soon discover that after the initial bonhomie of singing and congratulations, it’s really not what they expected.

And like a divorce, or often even harder than a divorce, a merger is tough to unwind.  One of the points we stress in many of our CPE sessions is to urge attendees to envision what does success look like and to share that vision with their soon-to-be merger partner. And all things being equal, hopefully they will do the same.

Because if Firm A’s definition of success differs more than slightly than that of Firm B, then the marriage will most likely resemble something out of an Elizabeth Taylor biography. And no one wants to enter an unsuccessful merger eight times.

But I digress.

As we enter the holidays and not far beyond that tax season, most firms have their 2015 growth strategies securely in place – or at least they should. And should M&A be chief among them, remember that bigger is not always better. To be sure it can be, but one thing is certain about being bigger – it’s always bigger, whether it’s better is contingent on a number of factors. 

But we have always advocated that if you know what success looks like, better is better.

Here’s wishing you and your families a happy and healthy holiday.