Retirement is one of the most predictable events in business, yet many accounting firms remain underprepared for it.
IPA data shows that only 55% of firms have a formal succession plan for their managing partner or CEO role, despite an aging leadership pipeline that suggests major transitions are approaching. The gap is particularly pronounced among smaller firms, where succession planning often remains informal or undocumented.
Firms generating more than $75 million in revenue overwhelmingly report formal succession plans and structured retirement notice requirements. Among firms under $10 million, many have neither.
In some cases, partners can retire with little or no advance notice, creating risks around leadership continuity, client retention and institutional knowledge transfer.
But there is a bright spot in the data.
Nearly 80% of firms have established a formal client transition process for equity partners, recognizing that successful relationship transfer is often the most critical component of a leadership transition. However, that figure falls sharply among the smallest firms, which are often the most dependent on long-standing partner relationships.
The data suggests succession planning influences more than leadership continuity.
Firms that invest early in leadership development and transition planning may be better positioned to preserve client relationships, maintain culture and sustain growth as leadership changes occur. Those that delay may find themselves navigating transitions under far less favorable circumstances.
The full IPA Insights report explores succession planning practices, leadership demographics and transition readiness across firms of all sizes. Purchase it here: https://form.jotform.com/253235687892168.
