Succession determines whether a firm’s future unfolds by design or by circumstance.
In the Winter 2026 edition of the Journal Entry, published by the Utah Association of Certified Public Accountants, we explored how accounting firm owners can approach succession as a strategic design choice rather than a distant milestone.
The full article examines ownership models, structural tradeoffs, and how early planning expands long-term flexibility. What follows is a focused summary of the core ideas.
Succession Affects the Firm Today
Many firms carry informal assumptions about how leadership will transition “someday.” Few have pressure-tested those assumptions against capital requirements, governance mechanics, and real-world timing.
Succession influences:
Concentration of client relationships
Distribution of decision-making authority
Recruitment and retention of future leaders
Owner liquidity and personal financial security
When planning begins early, structure can evolve gradually. When planning is delayed, decisions compress into shorter timeframes with fewer alternatives available.
Unexpected life events can accelerate that compression. Health, disability, or family considerations change timelines quickly.
A defined plan protects the firm under multiple scenarios.
Internal Succession Requires Financial and Structural Clarity
Transitioning ownership to junior partners remains attractive because it preserves continuity.
Execution depends on structure:
Access to capital for buyouts
Alignment on risk tolerance
Agreement on valuation methodology
Clear governance roles post-transition
Realistic timelines for liquidity
Internal plans often slow down when capital constraints or generational expectations are addressed too late in the process.
Addressing those variables early improves durability.
External Capital Is Not One Category
As internal pathways have become more complex, external buyers have become more active in the profession.
Ownership models differ in measurable ways:
Investment horizon
Governance structure
Growth expectations
Distribution of control
Exit timing
These variables influence operating decisions long after a transaction closes.
Some structures concentrate decision-making at a centralized level. Others maintain local leadership autonomy. Some are built around defined exit cycles. Others are designed for long-term holding and reinvestment.
Understanding those structural differences allows owners to evaluate fit with precision.
A Practical Resource for Owners Evaluating Transition
For firm owners who are actively assessing succession, clarity on process matters as much as clarity on structure.
Our guide, What Really Happens When You Sell Your Firm: A Stage-by-Stage Guide, outlines:
Types of buyers active in today’s market
How valuation is typically calculated
What occurs during Pre-LOI and Post-LOI phases
How governance and leadership evolve after closing
It is designed to help owners evaluate options before engaging in a formal process.
The Core Question
Succession planning is not simply about timing. It is about structural alignment.
Does your current ownership design support the future you want for your firm, your team, and your clients?
The full article in the Winter 2026 Journal Entry examines these themes in greater depth, including the tradeoffs across ownership models and the advantages of early design.
