No matter where you go, what you read, who you talk to, or what channel you flip to, you can't avoid the clutter around the economy; everything from bankruptcies, fraud, lay-offs, stock-marketing, taxes, the real-estate bust, etc. It is like the Reba McEntire song "Is there life out there", okay, I am from Texas. But seriously, if your firm let you go, or if you were a partner that was forced into retirement, after your pension and 401k just took the worst hit in your life; would you be able to find a home?
That is what news is for, to scare you, to make you feel negative and to drive panic. Don't get me wrong, the market has obviously seen better days, months, and years, but there is life out there. MAC & Associates has over 35 partner positions nationally around all areas of Audit, Tax and Advisory. These positions range from local, regional and national firms, and the positions range from Forensic Litigation, State & Local Tax, International Tax, Internal Audit, Transaction Advisory Services, Federal Tax, Audit, Investigations, Disputes, CFO Advisory, and Restructuring and Turnaround.
Your next thought is probably around, "okay bumpkin from Texas, where are these positions"? Hang-in-there, I am starting to make my point!
With the current situations in each of the Big 4, it is very hard to see the light at the end of tunnel. With over 33,000 partners world-wide and almost doubling that number for Senior Manager/Director equivalents, it is fair to say that they are stagnated. This has caused stagnation for partner process the past few years, and now mixing that with a bad economy is only adding more fuel to the fire. Going back five years will provide the industry trend that will take over public accounting and management consulting firms for the next 10 years.The migration of Big 4 Partners has helped provide the growth that is here now and which will continue. Across all areas of public accounting/consulting, the Big 4 had the market-share; every company wanted the Big 4 signature on their work. When we tried recruiting Big 4 Partners after the crash of Arthur Andersen, we were seriously laughed off of the phone. However, with stagnation, internal politics, quality of life, etc; Big 4 partners naturally started to migrate out of the Big 4 into national and regional public accounting firms. With non - Big 4 national firms, over 50% of the partners have Big 4 or Big 5 Pedigree. Now, companies can call on these firms and see the same quality of work as before, however with a better price! Nothing like a bad a economy to kick-start that mentality throughout all industry sectors. Secondly, TGFSOX (Thank God for SOX) has helped the migration of Big 4 Partners out of their advisory spaces and into the arms of FTI, Alvarez & Marsal, Alix-Partners and again, non-Big 4 national public Accounting firms. When moving out of the attest world, you can cross-sell all of your advisory spaces and not worry about being restricted, so obviously these firms have grown significantly and providing the same Big 4, Big 5 pedigree that companies seek. Additionally, your middle-market firms have been nipping at the toes of Fortune 1000 + clients since 2003 because usually one of the Big 4 is doing the attest work, so these firms have seen their window open up to move in and prove their quality of work on the advisory side. The third and most important reason the migration of Big 4 Partners will spike over the next 5+ years is the market. Like the old saying goes, “with every bad situation, something good is sure to follow". With every consumer, whether you’re the corporate giants, or the mom and pop shops, everyone is looking for a better price. In the last 24 months the Big 4 have been losing bids right and left to national and even regional firms; and why not, a company would be foolish not to jump in the sack with a non-Big 4 which is providing the same quality of work, however, at a highly deserved discounted rate!
Over the next 5-10 years the public accounting and consulting world will see the biggest growth within the middle-market firms; not only the national middle-market firms, but even the local and regional firms. Last year we placed a Tax Partner with a local public accounting firm down in Houston, this candidate's salary was better than an equivalent partner’s would be within the Big 4. This article is not to imply that if you are a Partner in the Big 4, that you will not be promoted, or that you will be forced into retirement. What I am saying is that the Big 4 is very much stagnated, and too big, so to gain the equity, leadership and progression that a public accounting or consulting professional will desire over the course of 30 years, your best bet is with a middle-market firm!
Written by: John McSpadden, Owner/MAC & Associates LLC
