Does anyone foresee more national-sized PA firms being acquired by publicly traded companies in the near future? If so, which firms would you assume are next on the chopping block? The recent acquisition of Marks Paneth by CBIZ comes to mind when posting this.

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I’ve yet to see it really work out. There are a couple firms that have gone this way, but it mostly seems like a cash grab by current partners. The long term competitiveness of these firms is pretty dubious. Part of what motivates people long term is a shot at partnership- take that out of the equation and employers need to compensate people better and for the most part I haven’t seen that.

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When the bottom line is beholden to outside shareholders, it disincentives the compensation model for the firms leaders that would otherwise be partners. I’m assuming there would be an equity component such as restricted stock or options, but then those would be subject to market performance outside the control of firm leaders. I certainly wouldn’t opt in to that model.

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