Summary
Accounting firms
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Extract
Practice survival; planning for the next generation.
PRACTICE SURVIVAL
Planning for the Next Generation Local accounting firms rarely survive into the second generation. Once the founder retires or dies, the firm often disbands with individual practitioners going their separate ways or, in growing numbers of cases, "merge" themselves out of existence. To survive into the next generation, local accounting firms first must solve the single biggest problem they will face upon the founder's death or retirement: a lack of effective leadership. Generally, because the founders of the firm are entrepreneurially and technically focused, there often has been no need for a formal structure in the office. Employees' hard work is typically rewarded with a promise of future ownership. Founders tend to change their firm's way of practicing only in response to clients' needs. Suddenly, the founders are ready to retire, and the firm's primary leadership is about to disappear. To survive, the firm must identify leaders who will give the f...See the full content of this document
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