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Currently in the “dump money in to improve efficiencies” phase so it’s fun. Rolling out new processes, technology, etc that are actually improving the way we audit. Don’t plan on leaving until I see it negatively affecting my career goals and day to day life.
Not sure anyone knows what will happen in 5-10 years when PE wants to turn around and sell off for profit. This is likely true across all firms that are PE backed. Just a new environment no firm has truly navigated before.
SA1 - also how would you even know that? PE being in this space is so new and unknown. Who knows how long they intend to hold. Like EY said, this is exactly why I put a range.
I ran away before it all happened at bdo. I think these PE firms will kill the PA profession, which is already a tough one. Most of my ex-coworkers are looking to exit.
Mostly industry. Some other firms. I moved to b4.
Rising Star
Nothing bad has happened yet, so I have no sense of urgency but I know long term it's a bad plan to stay
This. The industry is good to learn, but then hop to real industry roles.
Haven’t noticed much of a difference…yet.
I just wanna know how life being different after the firm got PE backed… more pressure on utilization?
The big difference is that before PE, firms cared about cash flow and sustainable profit. PE cares about equity appreciation. Multiples mean that adding a dollar to the bottom line today is 10-30x more value when they cash out (or 50x if you believe some pundits).
$$$ and promises of more $$$ and fancy future titles.
BDO has no PE equity, but not much has changed. Things are good, growth opportunities everywhere. The ESOP will be nice for people that want to stay long term, for short term it’s a non factor.
I fully understand Apollo has no "equity," but you have to understand that cash is king. When you owe someone nearly 200M/year in interest payments (notwithstanding principal), they have a lot of say in how you run the business. just like when you have a mortgage, the bank can require you to have inspections, insurance, perform repairs, etc.
None of us have seen any of the debt covenants, but from what I hear, BDO's balance sheet was completely upside down (hence the predatory interest rate and the need to even involve PE to begin with), so not hard to believe there are some other precautions built into the agreement that benefit Apollo.
Working for a firm who was just bought by a PE firm in Feb. Things are just now starting to happen, as they waited for most transitions until after the tax deadline in April. We’re in their payroll / benefits now, which are better. We’re about to get all new computers. Beyond that, I’ll stick around and see if processes improve - which I’m hoping they do for the good.