How can I tell if an accounting firm’s work depends on one senior partner’s relationships?

Begin with a client list that shows, for each of the largest accounts, who found the client, who prepares the work and who the client contacts. Look for how many trace back to one person. Add the fees each brings in, so you can see how much of the firm rests on a single relationship.

Then ask about the relationships themselves. How long has the partner served each client, and do clients also know other staff? Are there junior people who attend meetings, or does the partner handle everything? Ask whether the partner plans to stay on, for how long and in what role after a sale. The answers tell you how smooth a handover could be.

Finally, talk about the future. Ask clients’ introductions to be arranged once the sale is agreed, and consider a transition period where the partner introduces you. Ask your lawyer how any non-solicitation or continuing role should be written. Review the firm’s financial statements with your accountant so that the revenue you think is spread out really is. Remember that clients may also be loyal to the firm’s staff, systems or location, and not only to a partner. Ask a few of them, with the seller’s permission, what keeps them there.

Key takeaways

• Link each large client to who found and serves them.
• See how many trace to the same partner.
• Ask what role the partner will play after the sale.
• Plan introductions and a handover period.