What to Expect When Your Firm Merges

When accounting firms merge or acquire other firms, or simply entertain the prospect of merging, tensions can run high, and employees can experience feelings of anticipation, anxiety and fear of the unknown. Managers and firm leadership must balance how to handle employees’ concerns while moving the firm forward.

Transparency is Key

Being open about a merger at every stage of negotiation is not always possible, but the more communication, the better. “Transparency is leadership. Honesty, even when you don’t have all the answers, builds trust,” said Becca Heissel, author and founder of Business Owners Advocate. “Let your team know what you do and don’t know — people handle uncertainty better when they feel they’re being included in the process. Delegation is also a powerful morale booster. When you delegate, you empower. Ask for employee input and listen deeply — not defensively.”

Without good communication, employees can feel more lost than included. As Joseph Tarasco, CPA, CEO and founder at Accountants Advisory Group, LLC, explained, “Cultural integration takes time.” Differences, he said, in decision-making styles, communication, billable hours, remote working policies, compensation structures, staff performance management and accountability, as well as how staff success is measured, may cause cultural friction during the transition period.

The process works best, he added, when the leadership of the selling firm is as transparent as possible to the staff by sharing what is known and acknowledging the aspects that are still being developed. “Encourage open dialogue and create safe spaces for staff to ask questions or express concerns,” he said. “The leadership of the acquiring firm, together with their HR staff, should conduct a couple of town hall meetings before the closing date.”

Sviatlana LiPuma, CPA, managing director at CBIZ and shareholder at CBIZ CPAs P.C., recently experienced a firm merger and acknowledged the importance of following some best practices and town halls to help ease the transition. “Our firm’s top-level management ensured that training sessions were available to help employees adapt to new operational changes, policies and procedures. Regular town hall meetings were also organized to keep everyone updated on the progress, discuss challenges and gather feedback,” she explained.

Working to ensure positive morale about a merger should start early, added Eileen Monesson, CPC, MBA, CEO of PRCounts, LLC. “Communicate early and often, create space for questions and respond with empathy. Avoid overselling the situation or claiming values are aligned unless that alignment is truly felt throughout the organization,” she said.

It’s especially important, she added, “to avoid an ‘us versus them’ mentality.” When employees feel loyalty to their legacy firm, she noted that divisions are easy to form. “Leadership should be intentional about creating unity by focusing on shared goals, mutual respect and open collaboration. Reinforce that everyone is now part of the same team — and model that from the top down.”

The Mental Approach

Factoring in employees’ well-being is crucial to all aspects of any merger or acquisition. “Everyone handles change differently,” noted Joseph Hunt, CPA, PSA, manager at CLA (CliftonLarsonAllen LLP) which acquired Sobel & Co. in 2023. “One of the most insightful things I experienced when we joined CLA was they brought in people to meet with us to explain the psychological journey of this huge change in our professional lives. I found it’s crucial to support the person next to you in how they’re feeling and meet them where they are. By doing that, you move forward together in a positive and collaborative way,” he explained.

Providing extra training to ensure employees have a good mindset about the transition, not just the technical tools, is crucial, added Heissel. “Mergers don’t just shift systems — they shake identity,” she said. “Supporting your staff in adapting emotionally and mentally is just as important as showing them how to use a new customer relationship management (CRM) system. When done well, a merger isn’t just a business transaction — it’s an opportunity to recommit to your people and your purpose.”

An understanding of why the merger is occurring is equally important to communicate, according to LiPuma. “Mergers are common in the accounting industry; they are driven by the need to invest in technology, comply with increased regulations and manage future payouts to retiring partners,” she said. “Although the changes can be challenging initially, they ultimately make you stronger, more adaptable and better equipped to face evolving demands in the accounting industry, thus enhancing your value as a professional.”

Expect the Unexpected

When things don’t go as planned, remaining flexible as an employee can help. “Even when a merger date is announced, deals can be delayed or fall through. So, while it’s important to stay informed and prepared, it’s equally important not to panic,” reminded Heissel.

And remaining open to new opportunities at the newly merged organization also ensures a smooth transition, said Hunt, who acknowledges it’s important to try one’s hand at new roles. “You are learning new ways of doing things, new rules and new procedures, and that can make everything look a bit different. Trust the new way you are doing things as a ‘why,’ which you should not feel afraid to ask about,” he said.