2005 Could Be a Boom Year
Early returns suggest most CPAs expect a pickup in mergers and acquisitions activity. That usually augurs increased demand for CPA services -- and most CPAs seem to agree.
For some background: What the New M&A Boom Means to You
Here are the preliminary results...
1. How convinced are you that mergers and acquisitions among small-sized and mid-market COMPANIES will increase in 2005?
Completely Confident: 30%
Mostly Confident: 48%
Somewhat Confident: 18%
Not Confident: 4%
2. How convinced are you that mergers and acquisitions among small-sized and mid-market CPA FIRMS will increase in 2005?
Completely Confident: 6%
Mostly Confident: 48%
Somewhat Confident: 35%
Not Confident: 11%
3. How do you think this trend could affect you PERSONALLY?
It'll be TOTALLY GREAT for me: 15%
It'll be MOSTLY GREAT: 47%
It'll have NO EFFECT on me: 35%
It could HURT SOMEWHAT: 2%
It could hurt me A LOT: 2%
1) Expect to see the acquisition of US companies by foreign companies to increase, since the devalued dollar makes cross-border acquisitions much less expensive.
2) There just doesn?t seem to be any firms for sale in my area. Every month the buyers far outnumber the sellers and most buyers' ads go unanswered.
3) Advisors need to plan on being licensed to represent sellers, as this is becoming the norm.
4) How to finance the transactions effectively
5) I would think the "aging of the baby boomers" is having an impact as well as the Big getting rid of business.
6) Discount and premiums for smaller privately held companies. How to apply for investment value, fair market value. Also 50/50 and one shareholder is buying the other out not under a dissenting shareholder action.
7) We all have to quit sometime.
8) I believe in the long-run it both helps and hurts. It helps because as companies combine, it creates opportunities for new start-ups; it hurts because of a tendency to lessen competition.
9) Tell clients to prepare in advance!!!!!! A Client with a good plan will make out much better than one who wakes up and decides to sell right away.
10) real value to consumers--- check out UAL and Delta rumors
In what type of business do you work?
Public accounting: 60%
Business or Industry 16%
Government: 2%
Not-for-profit: 0%
Education: 2%
Other: 20%
How many people work in your office or location?
1 to 10: 45%
11 to 50: 25%
51 to 100: 13%
101 to 500: 13%
More than 500: 4%
Which best describes your position?
Chief Executive/Managing Partner: 35%
Senior Executive/Partner: 33%
Middle Management: 13%
Staff: 9%
Other: 11%
Copyright Rick Telberg/Bay Street Group LLC. All Rights Reserved.
