For virtually every CPA firm, its coming.
Most firms are choosing to ignore it or kick the can down the road until they have to deal with it.
There is nothing that can be done to stop it.
You can’t negotiate it away.
It can’t be re-organized or re-structured.
It continues its unhindered march toward their firm and its effects on the firm will be substantial.
I’m surprised that nobody in the CPA firm universe is addressing it or has addressed it.
There doesn’t seem to be a solution, a strategy or a plan.
Recently it has hit the top 10 things that should be a concern to CPA firms, but surprisingly it wasn’t number 1.
What is it?
The impending, unstoppable retirement of Baby Boomer Business Owners.
According to a recent study, more than 4 million Baby Boomers will be selling or closing their businesses in the next 5-10 years.
And when they do, CPA firms will lose valuable, hard to replace clients.
After hundreds of conversations with CPA Firm owners over the past few months, the lowest % of clients that are Baby Boomers is 25% and the highest is 70%.
During my conversations, there wasn’t ONE CPA firm that had a plan to replace or retain Baby Boomer Business Owner clients when they sell their business or close it.
To say I was shocked would be an understatement.
Many of the CPA firm owners said they weren’t worried about it.
I’m not even sure what to say.
Losing 25%, up to 70% of business revenue is a REALLY BIG DEAL!
But there isn’t a plan?
You can’t keep your head in the sand.
This is happening and smart forward thinking CPA firm owners should be coming up with a strategy to retain the business as a client if it is sold.
This situation requires different questions to be asked so different answers and solutions are found.
Here are some of the questions that I came up with:
- How can a CPA firm take this situation and make it more profitable for the firm and the Baby Boomer Business Owner?
- How can a CPA firm add tremendous value to the Baby Boomer Business Owner as they enter this new phase of their lives?
- What can be done to retain the business as a client once it is sold?
- What additional revenue opportunities or services can we offer to Baby Boomer Business Owners that they would appreciate?
- How can we help them make more money from the sale of the business than they would normally get using traditional methods of selling?
- How can we help the Baby Boomer Business Owner increase the value of their business when they’ve been running it to have minimum taxes each year?
- What are the pitfalls that our clients would have, that we can help them avoid when they sell their business?
Those are just a few of the questions I asked.
Wanna hear the answers I came up with?
Reach out to me at Bret@buskel.com and ask.
I’ll be glad to share what I’ve come up with.
You’re really gonna like how everything works out!