When Tom Mescall was tasked with building the consulting practice at Armanino in 2004, it was made up of just two-and-a-half people. Today, under the leadership of Mescall, the practice has grown to 115 people and is on target to generate some $34 million in revenue this year. That kind of growth doesn't come without careful planning, and Mescall, Partner in Charge, Consulting, had a very specific strategy for success.
"We've built our entire consulting organization to focus on the needs of the CFO," he says. "But we got really specific and took it a step further by focusing on the CFOs of fast-growing companies, firms that are anywhere from about $50 million up to $1 billion in revenue."
It's part of what the firm calls its "CFO Evolution," a set of initiatives designed to enhance the value of the CFO to the CEO and Board of Directors. The focus, he says, is on people, process and technology that streamlines the accounting function and elevates business leadership.
The other piece that was critical, he says, was bringing a technology solution to the table that works for clients. Mescall was with KPMG when it found the right technology partner and "in a matter of years, that helped take KPMG consulting to a billion dollar business."
Mescall set out to do the same. Today, Armanino counts Microsoft, among others, as being key technology partners. "That's what fueled a lot of our growth and has provided tremendous opportunity to our people."
As a result, the firm enjoyed a rocket ride in revenue, growing from some $300,000 to $3.5 million in its first three years. "We were able to grow very rapidly from 2004 to 2007 during those Sarbanes-Oxley years," he says.
Even though the economy slowed, the firm continued to post impressive revenue and by 2009 was at $13 million. Some of that growth was fueled by an acquisition that brought 25 new consultants into the fold, and "we retained every single employee," Mescall is quick to point out.
For consulting talent, Armanino, which is one of the largest public accounting and business consulting firms in California, offers a very clear and distinct alternative to the Big 4. The same holds true for clients, who are looking for a different approach than what the Big 4 offers, he says. And that different approach has been paying off.
The firm grew 62 percent last year and is poised for another 22 percent growth in 2012. Mescall says the main fuel for that growth will come from IT solutions and ERP, CFO advisory services and outsourcing.
"The market is strong right now for consulting services we provide," Mescall says. "I think where we focus—on CFO services of fast-growing companies—is a real sweet spot for us. The demand for what we do is very high, and I see it staying that way for quite awhile."
—J.K.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.