By Ira Rosenbloom.
When two CPA firms begin serious discussions about merging or combining, the early focus almost always centers on economics, financial policies, and questions of control. Those issues matter—but they’re only part of the equation.
Too often, firms gloss over the operational realities that determine whether a deal thrives or falters: Integration, transition planning, and the day‑to‑day service platform. When these elements are underdeveloped before closing, the merger’s long‑term economics inevitably suffer.
To build a successful combination, both parties need to engage in candid, early dialogue about what life will look like after the ink dries. And during those conversations, certain phrases can reveal a great deal—either strengthening your confidence in the partnership or signaling that deeper probing is required.
Below are key statements to listen for—and what they may indicate about the readiness and compatibility of a potential partner.
1. “We have the following staff capacity and skills ….”
This is exactly what you want to hear. It signals that the firm understands its people—their workload, strengths, availability, and how teams might integrate. Specifics matter—about leadership experience, technical depth, seasonal availability, and capacity alignment.
What you don’t want to hear is, “We’ll figure out capacity later.” If one firm needs winter tax help and the other only has summer availability, the mismatch becomes obvious. Look for firms with complementary—not conflicting—capacity profiles.
2. “We will hire the people we need.”
This phrase deserves caution. It often indicates that the firm is not adequately staffed today. Hiring after the deal typically means onboarding junior personnel who still need training in culture, processes, and client expectations. If your motivation for a transaction is to solve existing capacity challenges, merging with a firm that has similar gaps may not move you forward. Some joint hiring—such as a shared firm administrator—can be appropriate, but the combined practice must be able to serve clients effectively on day one.
3. “We have people who do that.”
This statement can be reassuring—or a red flag.
It may reflect confidence and established expertise, or it may signal rigidity (“our way or no way.”) It also raises questions about overlap: Do both firms have the same skill sets? Are the capabilities complementary or duplicative? Does the phrase imply collaboration or territorialism? This is an area where follow‑up questions are essential.
4. “We have integrated before with these practices ….”
Hearing this is a strong positive. It suggests experience with transitions and the existence of a roadmap—one informed by lessons learned. Effective integration should never be on‑the‑job training. A firm that has navigated transitions before brings structure, discipline, and reduced risk to the process.
5. “We need a plan to grow the business.”
Before discussing transition mechanics, both parties should align on goals, strategy, and accountability. A firm that raises growth planning early is demonstrating forward‑looking leadership.
Conversely, statements like “We’ll take care of that down the road” indicate a lack of urgency or strategic clarity. Growth planning should be collaborative and intentional from the outset.
6. “What would our future success look like?”
This is one of the most constructive questions either party can ask. It invites shared vision, mutual expectations, and clarity around what success means for the combined firm. In mergers where a smaller firm joins a larger one, some operational compromises are expected. But on major strategic issues, alignment must be mutual—not dictated.
7. “What has made you the proudest of your firm?”
This question goes straight to values. The answer reveals what motivates the firm—client service excellence, technical achievement, community trust, complex engagements, or specialized expertise. Understanding what each party values most helps determine cultural compatibility and long‑term fit.
The Bigger Picture: Why These Phrases Matter
There are many compelling reasons for CPA firms to merge or transition ownership. But the success of any practice combination ultimately hinges on resources, communication, operational discipline, and the people who bring the firm to life—both clients and staff.
When negotiations become serious, the conversation must expand beyond financial terms. Agreements will be documented, expectations confirmed, and assumptions challenged.
Strong listening is not just a soft skill—it’s a strategic advantage.
Stay alert to the signals embedded in everyday language. Probe where needed. And ensure that the full agenda—strategic, operational, cultural, and financial—is addressed well before closing.
Doing so positions both firms for a smoother transition and a stronger, more successful future together.
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Ira Rosenbloom is Chief Operating Executive at Optimum Strategies.
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