Professional service firms have experienced growth and increased profitability over the last two years.
The issue of succession – promoting, attracting and managing the retirement of equity participants – has never been more challenging.
When do the owners of your firm take the time away from their day-to-day roles to think critically about what they want to achieve? Succession is just one issue that owners of professional service firms need to address.
Our Owner’s Room is a strategy framework facilitated by experienced Grant Thornton Partners to encourage business owners to think critically about their role and ambitions as an owner.
The conversation is focused on ownership rather than management issues. For professional service firms this can include consideration of your:
- Corporate structure - is it ‘fit-for-purpose’?
- Equity levels – what is a ‘full equity’ Partner?
- Governing documents – are your equity agreements and related documents up-to-date?
- Being Option Ready – having the firm ready to maintain/buy/sell/wind down
- Role & expectations of an owner – at each phase of their ownership journey
- Firm strategy & culture
- Board of Directors – composition & decision making
- Owner meetings – reporting & decision making
- Funding of the business – internal & external finance facilities
- Earnings framework – fixed, variable, outperformance & equity return
- Succession management & talent pathway
- Ownership transfers – valuation mechanism and methodology
- Risk management
The Owner’s Room conversation is dictated by the issues most important to the owners. We guide the conversation to identify your key concerns, then document the issues and opportunities requiring action.
In recent sessions, Darryn Hockley and Craig Lawson have been hearing common owner concerns around ownership structure, earnings framework and valuation mechanisms in the current environment.
We ask that owners devote two to three hours to the process, which is conducted at our offices, away from the distractions of your premises.
If you believe your firm would benefit from undertaking an Owner’s Room with Grant Thornton please contact Darryn Hockley or Craig Lawson.
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