Succession Planning Strategies Every Firm Leader Should Consider
Don't leave your greatest asset to chance. Start planning early to ensure your accounting firm prospers under new leadership.
By Mary Delaney | Digital Exclusive – 2025
After years, or sometimes decades, of building a successful accounting firm, nurturing their teams, and serving clients they care deeply about, many firm owners find themselves facing a common and difficult question: “What happens to the firm when I step away?”
With the ongoing talent shortage limiting new prospective partners on one end of the spectrum, and more aging partners looking to exit on the other, many firms are stuck without strong succession strategies for what comes next. In fact, only 41% of accounting firms have a formal succession plan in place.
Why are so many firms struggling with succession planning? Well, there are a few key factors in play:
- An aging ownership base: The average managing partner today is 55 years old. That means retirement is coming soon for many firm leaders.
- The talent shortage and pipeline gaps: Fewer people are entering the profession, and that’s creating a real leadership vacuum.
- Complex ownership structures: The traditional partnership model isn’t working for many firms anymore due to buy-ins being less affordable and exit timelines often misaligning between partners.
- Pressure to sell or merge: Merger and acquisition (M&A) activity is ramping up, but finding the right firm to be acquired by (and negotiating the right deal) takes serious preparation.
Suffice it to say, it’s a complex moment for the accounting profession. But the worst thing a firm leader can do is put off succession planning until it’s too late.
Whether you’re a firm owner who’s five years away from retirement or are already thinking about handing over the reins, consider these five succession planning strategies.
1. Be Open to M&A
M&A deals have become an increasingly popular solution to the succession planning dilemma many firms are facing—and for good reason. These deals can deliver great outcomes for retiring partners, continuity for clients, and new opportunities for staff. Though, it’s important to know that M&A also requires careful planning. Through my work, I’ve seen firm after firm walk away from promising deals because something didn’t line up: the values weren’t shared, the pricing models clashed, the tech stacks didn’t sync, or the culture just didn’t feel right. The good news is that these issues are often avoidable with ample runway before you need a deal to close.
2. Talk to Other Leaders
Consider talking to other leaders who’ve gone through the succession planning process, especially those who’ve gone the route of M&A. Learn what worked, what didn’t, and what they wish they’d done differently, which will help you avoid similar fates or mistakes.
3. Re-evaluate Your Client Base
Understand who your most valuable clients are and which ones are weighing down your firm.
Culling problem clients is an important step to building firm value and ensuring a smooth transition, minimal client disruption, and a strong foundation for business prosperity under the new leadership.
4. Invest in Tech
Firms that are leveraging artificial intelligence (AI) and automating low-value work are more attractive to buyers and run more efficiently. In fact, as revealed in “The State of AI in Accounting Report 2025,” 56% of accounting professionals believe that the value of a firm drops if it doesn’t use AI.
5. Take a Step Back
The more your firm can operate without your daily involvement, the more sustainable and valuable it becomes over time. Additionally, by stepping back, you can avoid potential conflicts of interest and empower prospective or new leaders to make their own decisions.
Ultimately, succession planning is more than a business strategy—it’s personal. You’ve led your team, served your clients, and poured years of your life into your firm. You deserve to know that it’s in good hands when you leave. While you don’t need all the answers today, starting the succession conversations early makes all the difference. Then, when the time comes, you’ll be able to put a success plan into action that lets you start your next chapter with peace of mind and confidence.
Mary Delaney is the CEO of Karbon, where she works closely with accounting firms to optimize their operations through modern technology. She has over 20 years of experience driving growth, transformation, and innovation in B2B software.
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