Market Characteristics
Consolidation in our industry has forced a focus on revenue rather than client relationship and service. M&A, bolt-on advisory services are sought-after economic models to offset the decline in traditional revenue lines and the risk of technological advancements that will further erode future profits.
Firms that are the most active are traditional tax and audit firms that are attaching advisory services that do not conform to that model and are hard to integrate. The result is a disconnected client experience based on a diminishing model. The core firm may have significant heartburn on how other advisory services align and add value to older lines. This is particularly true in IT-related fields. Unfortunately for many clients, these are the majority of new services being offered.
The market is ripe, and actively seeking advisory and CPA services that are contemporary and built upon today’s economics. Technology is not a nice-to-have offer, it is indispensable to the scale and efficiency of existing businesses. Without technology awareness and integration, business will fail.
Aligned
Pelican3 is a “future firm”. Our founders are steeped in technology skillsets along with the accounting and financial background that creates the core of business strategy today. We have founded companies, advised on M&A, built software, sought and received private equity and investment capital, audited and have been audited; from small business that needs to survive and scale, to regulated business that must be held accountable for clients and authorities and publicly traded companies with heavy oversight.
We do not believe that a firm, nor its clients, can be successful without a core skillset in both technology and finance. We also believe that firms built this way from the start will excel against traditional models.
This is not to say that partnerships are not valuable. They are. Immensely. We do things very well, and other things we need partnerships that help us deliver our promise to clients and our commitment to the community. Do not be surprised when we have a conversation that includes a referral to a partner when we cannot be excellent in that area.
Misaligned
This is a tough one, but also a reality. Firms grow. They grow in size as well as services. Sometimes they grow in overhead and the rates climb beyond the current client demographics. The base shifts and the new firm does not fit with the old client (or vice versa). This leaves the client in a hard situation: wondering where to go for help. It may leave the firm in an equally tough situation, wondering where to lead a client for a soft landing.
Pelican3 is a firm that wants to see the relationships and promises of these quality firms continue. This “landing spot” is a gap in today’s accounting markets.
Unaligned
Unfortunately, we see an opportunity to be there for more dire situations: pruned clients left without a soft landing. The reasons are many (offices closed, revenue metrics that force clients to find other solutions quickly and without preparation, acquisitions often leave clients outside of the new firm), but the result is the same. A client is left out on the streets. A long relationship quickly morphs into a vendor invoice situation.
You have a firm that wants your business. You have a firm that will not “fire you” for revenue. You have a firm that understands what drives our success, and who drove it. You have a home.
Welcome to Pelican3.
Strategic Tech. Financial Growth. Harmonized. ©
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