More Partners Mean Bigger Profits, New Research Reveals

Monday, February 07, 2011 00:56
More Partners Mean Bigger Profits, New Research Reveals

Despite the stereotype of the lone-wolf advisory shop as being more profitable as well as more nimble, the most lucrative firms actually share the wealth across a wider employee base.

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The latest survey from Moss Adams / IN reveals that the typical firm shares at least a bit of its profits with about 25% of its overall team.


But in the top quartile of firms -- reflecting everything from client retention to growth -- actually provide 40% of their employees, on average, with a piece of the action.


That skin in the game improves performance and morale, industry gurus say. Even adding a partner or two can work wonders.


Comments (1)

I wonder whether this increased performance is also based on firm size. I find that when a firm gets to about $4 million in annual revenue the profits also soar. Usually a firm of this size will have several equity owners. So, is it the equity owners or is it firm size that drives profit?
Joshco0752 , February 07, 2011

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