Reducing operational impacts when doing a deal.

Far too often we encounter firms that are growing via acquisition that haven't put enough thought into the operational impact that bringing on a new client base can have to the business. Whilst the circumstances are subjective to each merger or acquisition in terms of parcel size, client count and service mix or blending teams, there are some standard considerations that will assist in reducing operational challenges once the deal is complete.?

1. Your Tech:?What do you currently have in place to ensure operational efficiency? Is it being used optimally so that when more clients come on board, your processes and procedures can support the additional workload? More so, what did the prior firm have and how will this be integrated or transferred into your operational software? Are you personally going to implement/do the transition or engage a third party to assist?
2. Processes and Procedures: how has work been completed in the past? If it's a merger, granular conversations on managing workflow, productivity, client interaction, team performance, workpapers and quality expectations, all have an impact on the output of work, therefor impact the client base and the financial results.?
3. Client expectations: doing?due diligence around the client workflow, operation processes and determining what expectations have been set for the client base will give you the greatest chance of keeping clients happy. How tech savvy are clients? Are they used to electronic signatures and accepting proposals for example? What about the way invoices are raised, is it fixed upfront or billed on completion??Most firms want to make changes when a new client base comes on board, how you make those changes will be the difference between keeping or losing clients. Nurturing your new clients through transparent communication will go a long way, so will positive reinforcement around why and how this is serving them.?
4. Internal reporting:?management?of the accounting business needs consideration. Most vendors will never produce meaningful reports?as they are accountable?(reporting) to no one, so digging deep here will assist. When in doubt, if given the chance, interview the team, they are generally a wealth of helpful information.?

Bringing on a new client base doesn't need to be challenging, doing it without thorough due diligence though, will almost always guarantee unnecessary stress for you, your team and your clients.

By: Amy Holdsworth - www.claritystreet.com.au