Accounting Today - July 19

Vol. 24 I No. 9 I July 19-Aug. 15, 2010

Succession planning to determine the future of a firm remains a challenge for

many accounting practices — particularly when family is involved.

“While I see more firms addressing the succession issues, it’s still not close to where
it should be,” said Joel Sinkin, president of Accounting Transition Advisors, a New
York-based firm that works with accounting firms in the area of mergers and transi-
tions. “I speak with firms on a regular basis who think they are in a position to address
succession internally, [but] I see it as being very unlikely.”
According the 2008 PCPS Succession Survey from the American Institute of CPAs,
Sinkin isn’t off base. While 35 percent of multi-owner firms had a formal succession
plan, only 9 percent of sole proprietors had one, compared to 25 percent and 8 percent,
respectively, in 2004.

Sinkin said that though he facilitates upwards of 50 transitions a year, generational successions are still in the over whelming minority. And those who are doing it are doing it any way they can, as there is no single formula for ensuring a successful generational transition. We talked to a handful of CPAs facing these issues to get their take.

BY LIZ GOLD

The once and future MPs: Robert and Robert Minkler, of Anders Minkler & Diehl

Keeping it in the family

Family firms share the secrets of their succession success

TAKING THE REINS

In January, Robert Minkler Jr. was named managing partner of Anders Minkler & Diehl in St. Louis. He succeeded his father, Robert Minkler Sr., who served in that role for

See SUCCESSION on 20
webcpa.com

National CPA and business advisory firm RSM McGladrey has signed a letter of intent to acquire Caturano & Co., the top regional firm in New England.

The deal would enable Bloomington, Minn.-based RSM McGladrey to expand its Boston-area operations with a combined 500 employees and 216 CPAs. The deal is subject to approval by the board of H&R Block, RSM McGladrey’s parent company.

Terms were not disclosed. The union will merge two Top 100 firms, as RSM and its sister firm, McGladrey & Pullen, ranked No. 5 on Accounting Today’s Top 100 Firms list with revenues of $1.46 billion, while Caturano was No. 42, with $61.8 million.

With the deal, Caturano chief executive Richard Caturano, who will become managing partner of the Boston office, expects to attract more venture capital and private equity clients, as well as higher education clients. The two firms reportedly began dis-

RSM to buy Caturano

MINNEAPOLIS

Deal to expand national firm’s reach in Boston market

cussing a merger last fall when Caturano met Block chairman Richard Breeden. He later met RSM president C.E. Andrews.

RSM and McGladrey & Pullen operate in an alternative practice structure, with M&P offering audit and attest services, while RSM provides tax, consulting and other services. The two firms nearly parted ways last year, but ultimately renewed an agreement last year to continue the arrangement.

“This deal makes a big statement about how RSM McGladrey and H&R Block are transforming the firm,” said PDI Global Inc. CEO Allan D. Koltin, who consults on mergers. “You get the impression that last year’s arbitration fight between McGladrey & Pullen and RSM McGladrey/H&R Block is a thing of the past and it’s full steam ahead. Caturano is not only a major player in New England, but they also have an outstanding reputation within the profession through-

See CATURANO on 20

Despite calls for Tax Code reform and simplification, the continuing onslaught of tax-related legislation means that the system will only grow more complex.

Hundreds of tax provisions have been added or modified in the past year, with the promise of more to come. Recently enacted legislation contains confusing limitations, phase-ins, phase-outs, expirations and extensions. As accountants know, this means a growing number of taxpayers will be turning to them for advice.

Meanwhile, preparer registration and e-filing mandates should help the profession as the number of illegitimate and fly-by-night preparers dwindles.

That changing regulatory landscape will

Test drives for tax software

Tax prep vendors are rolling out their summer bargains

BY ROGER RUSSELL

prompt tax software publishers to continually hone and refine their offerings. As a result, the summer months present an opportunity for preparers to examine new software that might be a better fit for the next tax season, as nearly all major vendors are currently offering previews and tryouts.