Most owners of small CPA firms have no exit plan—meaning their people, clients, and especially their own futures are uncertain.  And for the small firm owner, most of whom are aging baby boomers, the lack of a viable exit runway limits their ability to derive any retained value from their firm, which typically is their lives’ work.

While the CPA industry continues to consolidate, most acquisitions are in major cities with annual revenues of $20 million or more.  Small firm owners, especially those in smaller markets have fewer opportunities — or potentially no opportunity for an equity event.

The TAG Runway Program is changing that.

A Runway where there was none

TAG has created a model in which owners of smaller tax-centric firms anywhere in the country can phase out of the business over 2-3 years with these attractive features:

• Resources to complete tax returns and client accounting services

• A common tax prep platform

• Billing and collections

• Centralized back-office support (i.e. payroll, HR)

• Technical and soft skills training for your people

• Broader career path for your people

• An exit plan for the owner that can monetize your career’s work

Allowing for your highest and best use

Most successful firm owners became successful due to their client service and market reputation—not through the administration of a firm’s administrative functions.  In fact, most firm owners with whom we’ve spoken would like to remove themselves from the administrative aspects of running their practice.  The TAG Runway removes the wearisome administrative duties so you can focus on your clients.

What other firms might not tell you

The ugly truth about M&A in public accounting is that the acquired firm typically loses 20% of its clients and 20-35% of its people within the first few years, due to cultural gaps, fee pressures and bureaucracy.  (We’ve been victims of that ourselves).  With the TAG Runway model, you control your client base, and work to align fees with market rates over time.   

No Man is an Island

One of the other benefits of the TAG model is that you have an immediate peer group of like-minded firm owners, generally of the same age.  The criterion for joining TAG is predicated not only on the financial model but one based on chemistry and “fit”.  We know that not every firm owner is right for TAG Runway, and that’s OK. 

Cashing in and getting out

As you’ve likely seen with your own clients, the decision to retire is more a psychological than a financial one.  The ability to transition out over time with minimal disruption is the key to the TAG Runway program during a 2- or 3-year exit timeline in which:

• Engagement efficiency and profitability are increased

• Client relationships are extended to others beside the firm owner

• A detailed payment plan is agreed upon for the owner to derive equity vs. simply closing the doors, as is often the case with smaller firms

• Options to continue as an advisor or to develop or expand relationships and clients in your area

Learn More

Few professionals want to think about their own professional exit plan, but you have to start somewhere.  The TAG Runway provides you with another option—in which you retain more control over your future.  Let’s at least have a conversation—use the form below to contact Bob Armstrong to arrange a confidential conversation about how we might work together.