There are many pathways to succession. Many practitioners in the accounting space are choosing to broaden their succession options by appointing an equity partner. But how do you find the right one?
Succession via partner placement is chosen by some practitioners as it gives you the opportunity to remain in control of your firm in the medium term, progressively selling down equity while still receiving salary and profit share. But it can come with its own challenges.
Not every business is lucky enough to have suitable partner candidates already in place in their firm, ready to be mentored for succession.Even if you have a likely candidate in mind, you may find that your internal candidate’s goals don’t precisely line up with your needs. They might be expecting you to vendor-finance the arrangement or discount the buy-in price.
Or, after years of mentoring, they might just turn out to be unsuitable for the partner role. Or they could just decide it’s a good time for a career change out of the blue!
The best-laid plans can go awry. So, what do you do when this happens?
If you are committed to the partner path then you could consider an external appointment - even if you already have an internal candidate in mind, if for no other reason than comparison.
To help meet this need Practice Exchange has just released its Partner Candidate Board to give an overview of candidates suitable for accounting practices and financial planning practices. You can find the Candidate Board here.
It’s useful to know the kind of candidates that are available. When it comes to choosing a candidate who is a good fit, the bottom line is that your requirements will be as unique as your practice.
Please feel free to give us a call so that we can help you find a candidate to meet your needs.
Mark Witt CA
Mark is the Head of Brokering at Business Exchange with over 20 years experience and 400+ completed transactions
Read more articles
Changing Business Brokering - the Business Exchange Network
The sun is fast setting on the old way of business brokering. The privileged position of a business broker as a gatekeeper to information and connection is under threat in a world where clients can now find each other via searches on smartphones, and that means the most fundamental adage of business survival applies: adapt, or die.
Alternate Partnership Arrangements on the Rise
With cost of housing up and uncertainty all around it's not surprising that professionals seeking partnerships might hesitate at taking on more debt for an equity purchase. But some practices are solving the issue by offering a different take on the traditional partner package.
Finding Funded Buyers for your Financial Planning Practice
The combination of FOFA / RC fallout, Covid-19 and a tightening of credit availability is shifting the financial planning practice market in the direction of buyers. This has ramifications if you are thinking of selling - but it's not the whole story. As always, context is critical.
Choosing Your Legacy - Thoughts on the Empty Chair
Some practitioners are comfortable with the assumption that they will continue working until the end of their life, what might be considered the 'die at your desk' model. Fair enough, but there are big problems if you arrive at this position by default.
'Tis the Season - No, the Other One
It's a mostly acknowledged truth that the pace of Australian corporate world tends to shift following Melbourne Cup day. It comes much later for accountants who, defined by lodgement deadlines, tend to soldier on well into December whereupon things tend to stop completely.
A New Perspective on New Partners
Embracing technological change is always a challenge, particularly in the field of accounting. How can you keep ahead of the curve without adding even more to your professional education workload?
Quest for the Perennial Long Weekend
A long weekend is a welcome break from the weekly routine, a chance to rejuvenate and reconnect with family. Maybe a short trip away from home, fishing trip, weekender or just a chance to put your feet up and forget the schedule for a day. What if this were the norm, not the exception?