A Three-Pronged Approach to CPA Firm Growth
Source: CPA Practice Management Forum
Taking a cue from the Chicago Bulls' championship teams of the 1990s, consultant Allan Koltin outlines what he calls the “triangle offense” – a key growth strategy in many firms' playbooks today. In this strategy, the triangle's three sides are:
- Organic growth. Although organic growth has been flat over the last few years, in 2011 firms recommitted themselves to organic growth in unprecedented numbers. Koltin has observed a renewed emphasis on “guerilla marketing strategies” and strategic investments in CMOs and other business development talent.
- M&A. Two key trends today are significant increases in (1) “strategic,” as opposed to succession-planning-driven, mergers and (2) “mega-mergers” of $25-million-plus firms. Koltin also observes that many recent mergers have been more “surgical” in nature – that is, designed to enhance a specific industry or service area or expand a firm's geographical reach. As the economy recovers, Koltin anticipates more “out of the box” mergers in which firms acquire non-CPA “specialty boutique and consulting practices.”
- Free agency or lateral talent. Many Top 200 CPA firms are taking advantage of talented “middle-market” partners and managers who feel underappreciated at Big Four firms (which increasingly are focusing on Fortune 1,000 clients).
For the complete article, read “Strategies for Growth: The Triangle Offense.”
From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, January 2012, p. 21.