Alternative Succession Models Emerge in Accounting Industry Amid Consolidation

What's Happening?

The accounting industry is witnessing a shift towards alternative succession models as traditional mergers and private equity acquisitions dominate the landscape. These new models, such as the Integrated Business Services Platform (IBSP), offer firm owners different options for succession planning. The IBSP model, led by industry veterans Boris Onefater and Greg Farrington, emphasizes integrated operations, market focus, cultural preservation, and proven leadership. This approach targets underserved market segments, particularly small and midsized businesses, and aims to preserve the cultural elements that attract clients.

Why It's Important?

The emergence of alternative succession models in the accounting industry is significant as it provides firm owners with more options for planning their future. These models address limitations of traditional approaches, such as preserving client relationships and firm culture. The IBSP model, for example, offers gradual transitions and continued growth opportunities, which can benefit both sellers and their clients. This development reflects broader changes in professional services, where practitioners seek alternatives to joining large organizations. As the industry evolves, these models may influence succession planning strategies and impact the competitive landscape.