A New Perspective on New Partners

Business Brokering Monday 25th of November 2019

Embracing technological change is always a challenge, particularly in the field of accounting. How can you keep ahead of the curve without adding even more to your professional education workload?

Accountants were actually early adopters of desktop software packages. They were useful (indeed critical) tools – but tools are of little use without the skills and perspective of a trained professional who is able to bridge the gap between the technology and the needs of the clients and the practice as a whole.

The surge in popularity of online client-facing accounting systems now adds a new dimension and will mean that there is a real competitive advantage to be gained if your firm can offer the right kind of expertise.

But this expertise isn’t simple to master, especially for those of us who might have completed our schooling prior to the arrival of the world wide web. The kind of senior professionals who might be much more comfortable with an Excel spreadsheet on an office desktop rather than a Xero plugin on a smartphone.

To solve this problem some firms are seeking to add a partner who already has appropriate skills in place – a Tech Partner.

Recruiting partners to grow your business isn’t a new idea in itself, but traditionally a new partner was brought in to expand an existing service offering.

Now we’re seeing the new partner being sought specifically in order to add new techincal expertise and improved workflow capabilities across the business, resulting in both increased profits margins and client engagement.

It requires that the rest of the firm be able to adapt to the new methodologies. Existing partners will need to incorporate the new service offering in their client pitch and will need to cooperate with the new partner directly to leverage their new skill set. 

Oh – and you need to find the partner with the complementary skill set in the first place.

But for the firms that can negotiate these challenges, the result is a service offering that is much more competitive and profitable in the medium to long term.

It’s not the only alternative, of course. The missing capability can be sourced via joint ventures, mergers, new junior employees… you need to find the right option for your business.

Practice Exchange can help – get in touch if you’d like to know more.

Mark Witt CA

Mark is the Head of Brokering at Business Exchange with over 20 years experience and 400+ completed transactions

Read more articles

Merging to Retire - Is this an Option for You?

Succession can take many forms depending on your situation and goals. Considering a merger can give you options beyond a simple all-or-nothing sale.

Read More
Practice Exchange Buyer Index: Sydney Inner City and SMSF Fees Top of the Index

One of the benefits of having a tech team working alongside our brokering unit is the ability to draw data from our M&A platform to identify trends. We’ve been developing data prospecting tools to help us build a Buyer Index for the accounting industry.

Read More
'Tis the Season - No, the Other One

It’s a mostly acknowledged truth that the pace of Australian corporate world tends to shift following Melbourne Cup day. It comes much later for accountants who, defined by lodgement deadlines, tend to soldier on well into December – whereupon things tend to stop completely.

Read More
Not Quite Ready to Retire? Options and Alternatives for Accountants

You love what you do, and you’re good at it. So why should you just stop? Perhaps you shouldn’t.

Read More
Changing Business Brokering - the Business Exchange Network

The sun is fast setting on the old way of business brokering. The privileged position of a business broker as a gatekeeper to information and connection is under threat in a world where clients can now find each other via searches on smartphones, and that means the most fundamental adage of business survival applies: adapt, or die.

Read More
Selling Your Accounting Practice - Items affecting Price

Ever since we commenced selling accounting practices in 2001 the normal range of price for accounting fee parcels hasn’t varied much from where it sits today which is 70 cent to $1.10 of expected recurring turnover.

Read More
About the Private Broker Network™ (PBN)

The Private Broker Network™ (PBN) is a members-only walled garden marketplace for business brokering and succession transactions. It is intended to be used by large networks of member businesses such as financial planning dealer groups and franchises.

Read More
Appointing an equity partner: is it the right succession move for you?

There are many pathways to succession. Many practitioners in the accounting space are choosing to broaden their succession options by appointing an equity partner. But how do you find the right one?

Read More
Selling Your Financial Planning Business in Uncertain Times - When Is The Best Time to Sell?

With the pending FASEA requirements and predicted changes as a result of the Hayne Royal Commission into the Financial Services industry we are certain to see planners exiting the industry in increasing numbers. Should you go? And if so, when?

Read More
Accounting Succession - Asking the Right Questions

When I bring up the topic of succession with accountants there is a common theme: "I want to improve my work/life balance and maybe take some equity off the table, but I don’t want to retire yet."

Read More
Downsizing Your Accounting Practice (And Getting Paid For It)

One of the most disappointing things I see is when an overworked practitioner writes to some of their long-time clients to say that they can’t represent them anymore. It’s the business goodwill equivalent to burning cash.

Read More
Why more Financial Planning firms are also becoming Accountants

In response to an increasingly competitive marketplace many Financial Planning firms are bundling an accounting service to make it easier to attract and retain clients.

Read More
Maximising the Sale Price of your Planning Business - in changing times

Now that the Financial Services Royal Commission final report has been handed down one thing is clear – the way Financial Planning and Insurance Businesses are traded in the market place will change.

Read More