Succession Planning

1. AUG. 6 – 9, 2014 THE RITZ-CARLTON, NEW ORLEANS Session 9 – Getting Yourself Ready for Succession Planning August 7, 2014 – 2:20 – 3:10pm Jason Deshayes, CPA, CGMA Michael Elliott, CPA

2. WHO ARE THESE GUYS? Speaker Bios

3. #AICPA_EDGE Jason Deshayes, CPA, CGMA 3 Vice President – Butler and Company CPAs, PC Serving clients since 2003, providing advice to individuals and closely-held businesses, with a focus on professional services, medical and veterinary practices, individual taxation and business start-ups. Honored in 2011 as one of New Mexico’s “40 Under Forty” by NM Business Weekly PCPS Executive Committee – 2012 – present 2010 AICPA Leadership Academy Graduate Was a Seattle Seahawks fan WAY before they won the Super Bowl @taxguyjase

4. #AICPA_EDGE Michael Elliott, CPA Principal, Dittrick & Associates, Inc. Serving in public practice since 2007 to a wide variety of individuals and privately held businesses. Ohio Society of CPAs – YCPA Planning Committee, Public Relations Advisory Council Treasurer, Agape Christian Academy, Inc. 2012 AICPA Leadership Academy Graduate Cleveland Sports Fan – WAY before they ever won anything! 4@GeaugaCPA

5. SUCCESSION Shouldn’t be a four letter word

6. #AICPA_EDGE How to Succeed in Succession Skills Transitioning Clients Firm Processes Internal Decision / Culture Hand Off Branding Start a Firm vs. Succeed in an Established Firm Training Yourself to Run a Business Ensuring Success by Using the Right Tools 6 Today’s Topics:

7. SKILLS Do I have the right mix?

8. #AICPA_EDGE Getting the Right Skill Set Technical is important – but easy to obtain • Expert versus Generalist Business know-how – or “soft” skills are important • People – employees and clients • Practice administration Practice Development – Is it the “hidden” skill? • Mentoring • Being the Expert • Building A Network 8

9. MOVING CLIENTS Transitioning to the next generation

10. #AICPA_EDGE Transitioning the Clients SLOW DOWN: Take the time to do it right Don’t need to rip the “band aid” off of the relationship Some clients may resist…. • But others may thrive with a new relationship Lots of “touches” • Recent AICPA JoA article says that it takes 3-5 “touches” to successfully transition a client • Early and often are key to success 10

11. PROCESSES How do firm processes impact succession?

12. #AICPA_EDGE What is your process? Process uniformity is important • Firms should always put out quality work • All staff should understand importance of processes Documentation in case of emergency • Do you have plans in place in case of loss of staff? • Could someone come in and run your firm by looking at your process documentation? • Do you know what your partners do? Do they? Are your processes up to date with technology? When should you begin to redefine firm processes? 12

13. DECISION MAKING Handing over the culture

14. #AICPA_EDGE Who is calling the shots? Number one challenge in transition! Current partners may feel a loss of control of “their baby” How do you become a part of leadership prior to ownership? Have an (open) discussion on culture • People • Finances • Firm Identity 14

15. BRANDING You look good!

16. #AICPA_EDGE Recent rebrand 16

17. #AICPA_EDGE (Re) Branding How does a new look help facilitate ownership change? Important to marry the “old” brand with the “new” brand! Think about owner names when rebranding. Have fun and look at your competitors’ brand *(Good artists copy, great artists steal) – Austin Kleon 17

18. NEW VS. ESTABLISHED Picking the right path – More than one option!

19. #AICPA_EDGE Completely your own thing Can always buy other firms Less “compromise” on vision Barriers to entry low Easy to brand “on the cheap” May have no clients for a while Who is your backup? Are you smart enough to not screw up the tax return? You will likely be doing ALL of the work Should I Build a Firm? 19

20. #AICPA_EDGE Plug into a firm you may already be a part of You have backup! Risk is lower (but not gone all the way) Capitalize on internal built in value Built in client base More time necessary to transition vision and culture Still costly (buy out of previous owner) Potential internal culture difficulties Next Gen in Established Firm 20

21. RUN A BUSINESS You will be a business owner too

22. #AICPA_EDGE Run your firm like a Business Firm ownership isn’t about just being a great CPA Be thoughtful (and show it!) about… • Cash flow • Technology investments • Payroll • Caring about the clients Be an example to your team It’s not all about the firm, it’s about business: 22

23. #AICPA_EDGE 5 Points on Success in Business 1. Work with Amazing People 2. Take on Big Challenges 3. Focus 4. Take Care of Yourself 5. Love those Close to You https://medium.com/leadership-journal/formula-for- entrepreneurial-success-ea0b02c504cd 23

24. TOOLS What do you need to succeed?

25. #AICPA_EDGE Available Tools Get to know other CPAs, especially those outside your local area Find mentors – which doesn’t need to be only “old gray hairs” (but those don’t hurt to have either!) AICPA resources • PCPS (Private Company Practice Section) • Young CPA Initiatives • Leadership Academy State societies and CPA networks 25

26. #AICPA_EDGE Take a minute and jot down 3 things: 1.) Are you in the right place for succession? 2.) What tools do you need to take advantage of? 3.) Who can we put you in touch with to help you? Call to Action 26

27. #AICPA_EDGE Questions – give us a shout! Jason Deshayes, CPA jason@butlercpa.com 505-821-0893 @taxguyjase Michael Elliott, CPA michael@dittrickcpa.com 440-834-9686 @GeaugaCPA 27

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