for accounting firms evaluating private equity partnerships, shamis advises careful consideration of long-term impacts, particularly for younger professionals. \u201cleaders must be clear-eyed about the implications of private equity funding,\u201d he says. as shamis observes, private equity brings resources but demands a focused return on investment that may impact firm culture and partner autonomy.<\/div>\n
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6 key takeaways:<\/strong><\/p>\n<\/div>\n\nprivate equity firms are increasingly interested in accounting firms due to the industry\u2019s reliable cash flow and recurring revenue model. shamis highlights that accounting firms, especially those with advisory services, offer pe firms an appealing investment that is resilient during economic downturns.<\/li>\n private equity buyouts often create a divide between senior and younger partners. senior partners may be attracted to pe offers as they allow for a lucrative, immediate payout at a lower tax rate. in contrast, younger partners face an uncertain future, with pe firms prioritizing profitability and growth, sometimes at the expense of firm culture and career stability.<\/li>\n while private equity is making waves in the industry, the larger issue for accounting firms is a shortage of skilled talent. without a sufficient talent pipeline, firms may struggle to meet growing client demands and regulatory requirements, posing a bigger threat to the industry than capital constraints.<\/li>\n pe firms are particularly drawn to the recurring revenue and growth potential in accounting firms’ advisory practices. building and scaling an advisory practice can create additional revenue streams, which is essential for pe firms aiming to increase profitability in the short term.<\/li>\n private equity firms typically operate on a three- to seven-year investment horizon, which can clash with the accounting profession\u2019s longer-term, relationship-based growth strategies. while pe firms aim to enhance firm profitability quickly, organic growth in accounting often requires longer timelines than the typical pe investment allows.<\/li>\n when private equity takes a majority stake, a firm’s management dynamics shift, and partners may lose some decision-making control. for some firms, this loss of autonomy and culture could outweigh the benefits of additional capital, making it essential for firm leaders to assess whether pe\u2019s objectives align with their values.<\/li>\n<\/ol>\n<\/div>\n
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\nmore about gary shamis<\/strong><\/em><\/em>\nshamis<\/figcaption><\/figure>\n \n<\/strong>gary shamis assumed responsibility for his father\u2019s accounting firm in 1981. over the thirty-five years that followed, he took revenues from $225,000 to approaching $100 million and employees from a dozen to 600. he built the nation’s 37th largest independent accounting and consulting firm, before combining ss&g, inc. with bdo usa, llp in 2014. <\/em><\/li>\ntoday, as principal and ceo of winding river consulting, a business advisory services company, gary is a highly sought-after speaker, facilitator, and consultant. in its inaugural list of managing partner elite in accounting in 2012, accounting today identified shamis as one of only ten people recognized for qualities required of a person in a firm\u2019s leadership role. he is the \u201cvery model of the modern managing partner, and this list is more or less unimaginable without him,\u201d it stated, adding, \u201che invented, codified, or popularized most of the strategies and best practices that are now taken for granted.\u201d<\/em><\/li>\n<\/ol>\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
private equity in accounting could boost firm value, but at what personal cost?<\/strong> \n \naccounting influencers \n<\/strong>with rob brown<\/em><\/p>\n","protected":false},"author":5491,"featured_media":134065,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[4263,1362,2734,3002,2764],"tags":[4591,4731,3993,4717,4590],"class_list":["post-134062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-influencers","category-featured-video","category-podcast","category-special","category-video","tag-accounting-influencers","tag-gary-shamis","tag-private-equity","tag-private-equity-impact","tag-rob-brown"],"acf":[],"yoast_head":"\ngary shamis: the private equity hazards for young partners | accounting influencers - 卡塔尔世界杯常规比赛时间<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n