5 Reasons to Consider M&A—Even When Staffing Challenges Both Sides

Couple that with high turnover, retirements—and some issues with employee satisfaction and morale—and you start to question the viability of M&A for so many practices.

After all, if firms can’t currently get their own work done, why would they consider taking on more staffing woes with another firm? The answer, in some cases, is that it just makes good business sense.

The truth is that nearly every CPA firm complains about staffing and yet M&A deals continue to be made. Why?

It’s because savvy accounting practice leaders know that M&A can be a powerful pathway to business strength and security. M&A, when done right, positions the participants to be more appealing to staff and clients. Combining forces brings all kinds of virtues that have forceful and long-term impact, including staffing.

Here are five compelling ways that M&A takes the sting off staffing pains.

1. Efficiencies. M&A deals can create efficiencies in processes that create less tedious responsibilities for staff, which can also improve morale and employee satisfaction. Many studies have found satisfied employees are more productive and are more willing to go above and beyond.
2. Cost Savings. The efficiencies described above—especially in the technology arena—can create real cost savings which can be used to hire specialists, raise salaries, invest in the business, and make the business more sustainable. These efficiencies will also positively impact client satisfaction.
3. Niche Exploitation and Specialized Services. M&A typically positions firms to go deeper with niche markets and services, fostering the ability to specialize and cross-market services to existing clients across the two firms joining. This kind of market and service expansion also results in improving staff retention. Team members looking to develop professionally and grow their careers can learn new skills in a combined firm they may not have been able to achieve before. This makes their current employer and career path more appealing—and will become a selling point post-M&A for building client base. 
4. Increased Fees. At the same time, a more knowledgeable and engaged workforce puts the firm in a better position to do more value-added work, potentially charge more for those services, and provide an ability to increase staff pay.
5. Enhanced Culture. Deals can also enhance teamwork and firm culture, making the employment experience more compelling. Of course, similar cultures need to exist between the two firms combining. When a culture of support exists in both, team members can begin benefiting from one another immediately once combined. If cultures are dissimilar, it’s much harder to achieve this sense of harmony and teamwork.

With the proper vision, filters, and guidance pre-M&A, firms can achieve great things for their business and their team members.

Don’t let your present-day staffing woes stand in the way of doing smart business.

Figure out what’s in your best interests now and know that, done the right way, M&A may not only improve staffing woes. It will improve your future long-term relevance, sustainability, and prosperity.