Riding the Next Wave of M&A

With interest rates easing, accounting firms may soon see a renewed wave of acquisitions, rekindling an environment ripe for growth through mergers. However, firms hoping to make the most of this trend must heed the lessons learned from the previous wave of acquisitions. Integrating firms successfully requires meticulous planning, transparent communication, and a relentless focus on culture.

Due diligence, a partner vote and a signature on the dotted line is just the beginning.  True integration takes months and in many cases years.  Here are a few key lessons that I have taken away as lessons learned while working through integrations:

Communication Is Key

One of the most critical insights from prior acquisitions is the importance of early and ongoing communication. Firms should establish an internal communications plan that keeps employees informed about the integration's goals, timelines, and impacts on their roles. This level of transparency eases uncertainties, fosters trust, and sets a foundation for employees to feel part of the transition. In fact, successful cases reveal that firms prioritizing transparency not only avoid disruptions but also enhance morale.

Champions Build Bridges

Culture often proves to be the linchpin in a successful acquisition. It’s essential for acquiring firms to identify and align key cultural values between organizations. While every firm has unique cultural markers, discovering common ground can help bridge the gap and create a cohesive environment. Firms that have successfully navigated acquisitions often do so by enlisting internal champions from both sides who can advocate for shared values, celebrating what makes each team unique while promoting a unified culture.

Culture is King

One standout example is the acquisition of several regional accounting firms by a national entity that prioritized post-acquisition surveys and workshops to ensure cultural alignment and employee buy-in. Through these steps, the acquiring firm was able to quickly integrate teams and maintain high retention rates. By contrast, firms that downplayed the importance of culture in the first wave often faced challenges, including loss of key talent and low employee engagement, impacting service quality and growth.

The next wave offers a chance to refine and reinforce best practices from past experiences. Firms that approach acquisitions with a proactive communication plan, a thoughtful culture-integration strategy, and a commitment to learning from past successes and setbacks will be well-positioned for long-term success.

what’s inside counts