At Baker Tilly, we have a special focus on professional services companies – including lawyers, management consultants, IT consultants, engineers, architects, insurance and business brokers, etc. A common feature of these companies is that their business typically is based on selling their services on an hourly basis.
Generally, companies in this category have more than one owner and are organised in a partnership. The challenges owners/partners often face relate to division of profit for the year, admission of new partners and generational successions, wherein purchase and sale of goodwill often entails a relatively high borrowing requirement for the new and often young partners.
As a predominant rule, companies in this category are established as public or private limited companies with an operating company and several holding companies. This has been the preferred setup among those consultants, normally lawyers or accountants, assisting in their establishment. Paradoxically, accountants and lawyers themselves generally operate as partnerships. A company structure that often fits better to these types of companies.
At Baker Tilly, we specialise in advising on issues that are relevant to professional services companies, including company structure, generational succession models, models for distribution of profit as well as incentive, retention and attraction programs. All of this with a focus on ensuring the optimal utilisation of your company’s resources, and thus contributing to the active risk management of your organisation’s most important resource – its employees.
Have you discussed with your accountant whether your business is organised in the optimum corporate form?
If you are interested in learning more, please contact one of our specialists to book a meeting without further obligation.