Inside a 255-CPA-Firm Alliance: What Drives Firm Succession and Growth

Ed Rivera is a director with BDO Alliance USA, a network of 255 CPA firms and 180 Business Resource Network firms across the country. As an accounting firm owner or practice leader, the question Ed hears most is whether ownership structure determines success. His answer: it does not. Across the public accounting firms he works with, what separates growing practices from stalled ones is leadership alignment, not whether the firm is a traditional partnership, private equity backed, or an ESOP.

In this episode, Ed and Brannon dig into the volume of private equity interest reaching CPA firm owners today, and why treating private equity as one single category misses real differences in holding period and strategy from firm to firm. They also unpack what drives a firm toward merging versus staying independent, and Ed's view that both paths are usually driven by the same underlying pressure: whether the accounting practice can invest in the systems, talent, and technology its clients now expect.

The conversation also covers what alliance membership can unlock for practice management beyond training, from peer roundtables to leadership development pipelines, and why firms that build something their community is proud of tend to have an easier path through firm succession, whether that means a sale, a merger, or staying independent. Ed closes with a simple framework for any accounting firm owner weighing a succession decision: start by asking why the firm was built in the first place, and who it is really built for.

The Conversation Covers

How firm leadership alignment matters more than ownership structure or capital sourceWhy the volume of private equity calls to CPA firms has changed the conversation for accounting firm ownersHow firms decide between merging, selling, or staying independent, and why the early pressures often look the sameWhy joining an alliance for one reason often uncovers value the firm didn't expectHow asking "why" before a succession decision keeps the process groundedWhy community identity and pride show up as a real differentiator for public accounting firms

Ed's closing point is a useful one: the firms that build something genuinely attractive, whether they stay independent or eventually partner with someone else, are the ones that focus on the work itself and the clients and communities they serve. The structure follows from that. Getting the structure right first, without clarity on the mission and the people, rarely works in the other direction.

This episode is for accounting firm owners curious about how alliance membership could support their growth strategy, practice management leaders wondering how private equity interest should factor into their long-term plans, and firm owners ready to think through firm succession, whether that means selling, merging, or staying independent. It's also a good listen for anyone exploring what makes a CPA firm attractive to a future buyer or partner.

Timestamps

00:00 - Welcome to The Accountant's Flight Plan with guest Ed Rivera01:32 - What the BDO Alliance is and how 255 CPA firms work within it03:10 - What's top of mind for accounting firm owners in 202605:20 - Why the pace of change in public accounting feels faster than ever06:45 - Why leadership alignment matters more than ownership structure09:15 - Mergers and acquisitions activity across Alliance member firms11:40 - Private equity call volume and why not all PE firms are the same14:05 - What drives a CPA firm to merge versus stay independent16:50 - Culture concerns firm owners raise before a merger or sale18:40 - A firm that joined for training and found unexpected value in roundtables20:30 - How one firm built a stronger leadership bench in three years22:50 - A framework for firm owners weighing sale, merger, or firm succession25:15 - Why community identity shows up in the buildings firms choose to build27:40 - A memorable travel story from earlier in Ed's career30:05 - Book recommendation: The Human Element

Book Recommendation
The Human Element: Overcoming the Resistance That Awaits New Ideas by Loran Nordgren and David Schonthal [Amazon link]

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