Exiting an accountancy firm is a big step. It can be rewarding, but the process brings real challenges.

In a recent lunchtime masterclass, industry experts shared practical insights on mergers and acquisitions. They looked at due diligence, insurance, and operational factors that affect the outcome.

Below is a summary of the key points. You can watch the full session here:

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Panel

• Donald Boyd, UK Head of Growth, Azets
  
  
• James Wright, Associate Director, Howden
  
  
• Karen Eckstein, Managing Director, Karen Eckstein Limited
  

1. Focus on due diligence

Financial statements alone do not show a firm’s true risk. Hidden issues, such as weak risk management or past negligence claims, can reduce value. Thorough checks help prevent problems for both seller and buyer.

2. Check insurance early

Many firms overlook insurance in M&A. Ensure professional indemnity and management liability policies are current. Policies must align with the sale agreement to avoid complications later.

3. Engage brokers from the start

Delaying discussions with brokers can create last-minute risks. Early engagement reveals gaps and confirms if policies cover mergers and acquisitions. This reduces surprises and protects both parties.

4. Mind post-acquisition claims

Underwriters focus on potential claims after a sale. Any hidden liabilities can affect the buyer’s finances and future coverage. Careful review ensures these risks are identified and addressed.

5. Make operational efficiency visible

Buyers value recurring revenue, compliance, and a diverse client base. Smooth processes and good working capital management show a firm’s true value. Operational clarity can be as important as financial metrics.

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Collaboration matters

Exiting a firm touches finance, risk, operations, and clients. Accountants, lawyers, and IFAs must work together from the start. Early collaboration reduces risk and improves outcomes.

RQ helps professionals coordinate referrals and shared tasks in one compliant, auditable system, keeping everyone aligned without extra effort.