Merger Checklist – Strategic Issues

1. Motivation for the merger
2. Benefits to be derived – short and long term
3. Fundamental direction of each firm
4. Premises and building commitments
5. Technology and its development
6. Balance sheet analysis:
   1. funding philosophy
   2. drawings policy
   3. capital and expansion funding
   4. leasing requirements
   5. guarantees and partner liabilities
   6. banking arrangements
7. Financial performance – trends:
   1. profitability
   2. fee growth
   3. net profit per partner
8. Profit sharing arrangements
9. Admission and retirement of partners:
   1. progression
   2. entry price
   3. exit – consultancy – superannuation
   4. age grouping of partners
10. Partnership management:
    1. acceptable performance
    2. excellence vs adequate
    3. communication
    4. discipline
11. Lifestyle considerations:
    1. leave – ordinary
    2. long service leave
    3. expectations – hours
12. Management structure and philosophy:
    1. control management
    2. administration
    3. professional departments
    4. committees
    5. reporting procedures
13. Client list, conflicts and losses
14. Professional indemnity claims
15. Precedent development
16. Marketing
17. National and international connections
18. Image and culture