Many a Managing Partner will find getting through tax season a bit easier by dreaming about a merger after tax season. It takes a lot to make big dreams like mergers come true, but it is smart to think about what you want a merger to improve for tax seasons to come.
Think about these four core priorities if you are a merger dreamer.
Infrastructure. Successors need to push their infrastructure and systems to understand how much the operations team can handle. Successors need to be able to handle more people and issues. Sellers need to think about what they lack in infrastructure and specifically what they want to gain in talent management and processes.
Expertise. Successors need to consider whether their subject matter experts are sufficiently motivated (or whether a merger would motivate them more) and the ability to grow and/or add expertise. Sellers need to know exactly what kind of subject matter expertise they want the merger to provide and whether, if there are redundancies, that is either problematic or provides security.
Finances. All parties should find profitability easier to come by with a merger. Will offshoring be more attainable and more cost effective because of the transaction? Will minimum fees escalate because bigger is better? Will economies of scale and investment in technology be realistic in a suitable timeframe?
People. Successors and sellers will want to see a merger enhance the client and staff experiences. Neither wants important clients to feel out of place or staff stars to feel passed over. Tax season is the perfect time to think about how to increase staff and client satisfaction and figure out how a merger will achieve that.
M&A needs to make parties stronger and happier through the year, not just during the busy seasons (winter, September/October), when tensions are heightened. If a transaction will bring better conditions at the tough times, it makes sense to look at how it will improve all times.