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How Tax Season Affects M&A

Updated: Jan 13, 2021

For CPA tax practitioners, two general concerns weigh upon the minds of those nearing the time for an exit to retirement: tax season and the landscape for mergers and acquisitions (M&A). These two concerns may not be as separate as they might seem.

In this November 2018 podcast with Bill Hayes, Managing Editor of the Pennsylvania CPA Journal, Optimum Strategies COE Ira Rosenbloom outlines tax season metrics both parties should be looking at during M&A negotiations, and what CPA firm leaders should be focusing on in the 2019 tax season if they are considering an exit.

Bill Hayes: When it comes to mergers and acquisitions, has an organization's tax season operations always been a major factor to consider, and has it increased over recent years? And if it has, why do you think it has?

Ira Rosenbloom: Well, tax season has always been vitally important to any succession plan because most accounting firms make their real money during tax season. And over the last number of years, we now see that there are actually two tax seasons. There's the traditional tax season of the winter months which affects a number of individuals and a number of small businesses, and then you have the secondary tax season in September and October, which affects traditionally higher net worth and larger entities. So the ability to make your way successfully to your tax season is all about the inner fiber of your firm. And if you're considering doing a merger, you need to know that whoever you are going to merge into has the infrastructure to make your season hum.

Listen to or download the entire podcast at PICPA CPA Conversations

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