Private equity (PE) is transforming industries around the world, and that is increasingly true of accountancy. Private equity capital is flowing into professional services as asset managers look for new opportunities in a highly competitive investment environment.
The influx of money, and often business expertise can also be beneficial to accountants, but the relationship is not without challenges and needs to be carefully considered and managed.
Accountancy – an appealing asset
It’s not surprising that many PE investors view accountancy as a potentially lucrative investment. Accountancy firms are solid, well-established operations at the heart of local business communities. They offer positive cashflows, recurring revenues and low risk. As their role evolves from a technical one to something more strategic and advisory, the sector may be significantly undervalued.
At the same time, the transformation of accountants into trusted business partners requires investment – in talent, technology and potentially, acquisitions. The growth focus that PE investment brings can also create opportunities for staff while also enhancing the service offering for clients.
Relevant and Measurable Indicators
للعثور على البيانات التي تحتاجها، ستحتاج إلى إنشاء مجموعة من مؤشرات الأداء الرئيسية (KPIs) ذات الصلة والقابلة للقياس. ستحتاج إلى مؤشرات الأداء الرئيسية المناسبة لشركتك، ولكن بعض المؤشرات الواضحة هي:
نمو المبيعات - هل أدت الحملة إلى المزيد من المبيعات، سواء على الفور أو في النهاية؟ كم عددها، وكيف يمكن مقارنتها بتأثير الحملات السابقة؟
معدل النزول – متى يغادر الأشخاص مسار تحويل المبيعات الخاص بك – أي الرحلة من إظهار الاهتمام الأولي بخدمتك إلى أن يصبحوا عملاء يدفعون؟ قد يحدد هذا نقاط الضعف في نشاط التسويق والمبيعات الأوسع.
معدلات النقر إلى الظهور - بالنسبة للنشاط عبر الإنترنت، ما عدد المرات التي يرى فيها الأشخاص إعلاناتك أو منشورات مدونتك أو تقاريرك ويبدأون إجراء متابعة، مثل النقر على رابط أو طلب معاودة الاتصال؟ قارن هذا بالحملات السابقة.
العائد على الاستثمار التسويقي (ROMI) – قم بتقسيم إجمالي إيراداتك على استثمارك التسويقي وسيكون لديك رقم ROMI. قياس تأثير الأنشطة المختلفة عليه.
ومن المفيد أيضًا إجراء أبحاث العملاء على فترات منتظمة. وهذا مهم بشكل خاص إذا كانت جهودك التسويقية تركز على تغيير مفهوم علامتك التجارية أو تقديم منتجات أو خدمات جديدة، بدلاً من التأثير بشكل مباشر على المبيعات.
Compromise is Key
But for this to work, there needs to be an alignment of cultures and values. PE typically brings a commercial mindset and expects fast returns. A five-to-seven year exit plan is not always compatible with the traditional accountancy partnership model and its focus on long-term client relationships.
For a PE investment to work, both parties will have to move towards the middle. The key for accountancy firms is to ensure an alignment on vision, timelines and leadership continuity before accepting PE investment. Saying yes to PE capital suggests an acceptance of the need for faster and more focused growth, but that cannot come at the expense of the values that brought success in the first place.
Consider the Future
In the scheme of things, five, six or seven years is not a long time. After that, PE investors will be expecting a significant return on investment, achieved through resale, IPO or management buyout.
In other words, things are going to change again. This can be positive, as the firm settles into a period of calm consolidation after a period of accelerated PE-driven expansion. But you do need to think about what the post-PE landscape might look like when you accept the investment in the first place.
In particular, how might the PE timeline affect long-term decision-making, partner succession and brand sustainability? What is the plan for talent retention and service continuity at the end of the investment period?
Network Challenges
For firms that are part of a global network like UHY, another consideration is the impact on cross-border collaboration. When firms accept PE investment, the network needs to guard against any dilution of brand identity or collaborative instinct. Dynamics around shared investments can also change and need to be carefully managed.
UHY’s own member firm in the US has concluded a commercial agreement to take PE capital but as a founding firm of the international network remains as committed to UHY now as it was 40 years ago, with values and collaborative culture still a driving force for continued success. PE funding will add momentum to what is already there. Nevertheless, networks like ours may need to develop clear policies on PE involvement to maintain cohesion and ensure mutual benefit.
The Right PE Support can Bring Benefits
In many jurisdictions, non-accountants are restricted from owning equity in firms offering audit or other regulated services. This can be addressed by ringfencing audit functions, using multi-disciplinary partnerships or licensing brand/IP to an operating company. But firms must ensure that attracting PE will not breach professional standards.
It is one more factor to consider before accepting PE investment. Private equity involvement brings major change, and like all changes it needs to be carefully considered and meticulously planned. It is not something to leap into without eyes wide open.
Nevertheless, sympathetic PE ownership can help firms invest for the future and take the step up from technical services providers to trusted business partners. It is not for everyone, but PE is at least worth considering if you are looking to accelerate the next stage of your business development journey.
