As you manage your accounting practice, sometimes your attention gets diverted to things that might not be as important as others.
Of course, you worry about hiring and retention, partner performance, marketing/sales, facilities and the general reputation of the firm. Lots of time and energy are expended on short-term activities. Maybe it is time to escape the day-to-day and think about what might be good for the firm long-term. When have you really contemplated profitability and the long-term future of your firm?
Profitability is not just about partner salaries. If you are profitable, it enables you to fund future growth of the firm, attract and retain the most talented professionals, explore new services, offer the best technology to your staff and clients, and so on.
If you are not as profitable as you would like, you could simply give up and sell or merge your firm into another firm. Or, you could get larger by growing organically or by being on the acquisition side of a merger.
Many firms are merging as a way to achieve more rapid growth. It helps increase market share and, sometimes, eliminates competition. It also provides more resources to be able to produce products and services to meet the demands of a wider client base.
Keep in mind, a merger is a professional marriage and you need to know your future partner. Take time to look at a merger from all sides and be sure that both sides understand how a combined firm will operate. Involve an experienced outside facilitator. Give me a call if you want to simply discuss your specific situation.