Evolution of a large
firm – Concept Paper
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Why to form a large firm?
1. To grow in professional terms – audit of large
clients, serve the clients in new areas as well
as in specialized areas
2. To build an institution that lasts for long if
not for ever
3. To be able to get more / better synergies in
terms of revenue generation and costs
reduction
4. To work at optimum levels
professional expertise / knowledge
of
our
How to form a large firm?
1. Merger of firms
2. Network of firms or
Association of firms
3. Takeover of firms
4. Common Partners
Modus-operandi
 Identify like minded firms for working together,
which will coexist
 Identify firms that are willing for a takeover or
merger
 Discuss about the specialisation of the prospective
partner(s)
 Discuss about the annual net revenue per partner
of the firm subject to merger / takeover and the
firm that coexists
Modus-operandi
 Decide the monthly drawings, conveyance
allowance and housing allowance for each of the
partner
 Become common partners and let all the firms
work from single location in each town/city
 Allocate each of the service lines to each partner
 Identify senior partner, business development
partner, training partner and technical partner of
the firm
 Let the partnership deed spell out the permitted,
prohibited actions by each partner
Few more details
 There should be at least 6 to 8 firms that should coexist with
core common partners
 Each firm will have at least 16 partners and maximum 20
partners
 The weightage will be on monthly drawings rather than on profit
/ loss sharing ratio
 Few partners will be salaried partners, few will be engagement
partners with a restriction that they should not sign any report /
certificate, few will be client relationship partners and few will
be specialisation / expert partners
 Targets will be set for each partner in terms of new clients or
additional revenues from engagement or referral to other service
line
 Each service line bills separately and even the out of pocket
expenses will be billed to client
 No partner can be removed unless he / she commits a fault that
is specified in the partnership deed or does not perform to the
expectations of the senior partner & core committee that reviews
the performance
Please list out your
doubts and we will
clarify you
Thank you