Allan Koltin: How Small Firms Battle PE-Powered Competitors | Gear Up for Growth

CPA Trendlines Podcasts

Gear Up for Growth
With Jean Caragher
For CPA Trendlines
“More than half of the CPA firms in the country won't qualify to be part of private equity,” says Allan Koltin, CEO of Koltin Consulting, appearing on Gear Up for Growth, a new show hosted by Jean Caragher, president of Capstone Marketing, and powered by CPA Trendlines.

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Part of the discussion explores the criteria private equity companies look for and the challenges firms may face in qualifying for PE funding. Koltin believes that more than half of the CPA firms in the country don’t make enough excess profitability to create earnings before interest, taxes, depreciation, and amortization (EBITDA) to calculate an acceptable enterprise value.
“Leaders of these firms tell me they’ll go back and get more profitable,” says Koltin. “How's about, let's stay as an independent firm. Let's put a level of governance in. Let's make the tough decisions we've been talking about forever, and let's really run it like a business. Let's not be a 501(c)(3) anymore. Let's just pretend we're in business to make money.”
Other highlights include:

1. Learn how revenue size impacts a firm's ability to remain independent.
2. Find out about Allan Koltin’s three T’s – talent, technology, and transformation – and the fourth T that sparks worry.
3. Discover how EBITDA is an obstacle for many firms in obtaining investment and what to do about it.
4. Understand the role firm growth plays in attracting and retaining talent.
5. Learn how firms not receiving PE funding can compete with those who are.

At Capstone Marketing, Jean Caragher gets things done. With over 35 years of experience working solely with CPAs, Jean knows the challenges and opportunities firms face today. Her experience and knowledge and her practical approach help growth-focused CPA firms attract the best clients and talent. A well-respected industry specialist, Jean is an inaugural AAM Hall of Fame inductee, a multiple AAM-MAA award winner, and a CPA Practice Advisor Thought Leader. She has been named one of Accounting Today’s 100 Most Influential People twice.

Gear Up for Growth is tailored specifically for public accounting firms with up to 100 team members looking to expand their practices intelligently and efficiently. Each episode focuses on a topic crucial for accounting firms aiming for smart growth in today's competitive landscape.
Upcoming episodes of Gear Up for Growth will feature more of the profession's brightest luminaries, including:

• Mark Koziel from Allinial Global on new business models for CPA firms,
• Tom Hood from the AICPA on the connection between recruiting and retaining the best talent with an environment of supportive learning,
• Joey Havens from Horne CPAs on the role culture plays in firm growth, and
• Jen Wilson from ConvergenceCoaching on top-shelf people practices.