Join forces with the opposition??? Actually that sounds like a good idea…

You can’t open the business pages without hearing about one merger or another, and it is particularly abundant in accountancy.

The Big 4 were the pioneers of using this as a way to grow their existing presence; known as the Big 8 for most of the 20^th Century and originated from alliances formed between British and US accountancy firms in the 19th or early 20th centuries.

Since then it has been common and increasingly popular amongst firms looking to expand.

So why is it so popular?

The advantages of merging depends on the type of firms involved, with Top 50 firms looking to acquire smaller firms to grow fees and strengthen their teams as well as merging with similar size firms to boost their revenues more significantly.

However today we want to talk at the advantages of merging for small firms and Sole Practitioners.

The image of an accountant being a quiet, grey looking man, wearing a suit with a ledger book and an adding machine is now outdated. Accountancy is a competitive market and for firms to succeed they need to be commercial and offer business advisory services as well as accountancy in its pure form. . This is where merging can offer benefits other than just fee growth. Different skill sets that complement each other can strengthen a business from within, with certain technical skills found in one person and commercial attributes in another providing a firm with a great combination of skills and experience to further grow the business.

In terms of support, merging can also be beneficial to small firms. Quite often when we are instructed to look for a potential merger for a Sole Practitioner it is because they want the infrastructure and support of another firm/person. Bouncing ideas off peers, utilising junior members of staff and freeing up time for more complex work or business development can mean the difference between a £60K fee income and a million pound business.

Then of course there is the added bonus of an instant increase in gross recurring fee income, which has its obvious advantages and with succession planning being vital in small businesses, it also provides an option for this eventuality.

As a specialist accountancy practice recruitment company that understand how firms work, we are increasingly asked to look for potential merger propositions for small firms and Sole Practitioners, as well as the larger firms looking to acquire fees, which is why it is a service we have developed over recent years to meet the growing demand.

We currently have a number of opportunities for Sole Practitioners and small to medium sized firms, so if you are keen to explore this as an option, do get in touch. 01604 768000 / kate@waverecruit.com.