In just three years, WTP has doubled in size and grown revenue 58 percent
Since being named one of our 2009 Seven Small Jewels, WTP (formerly Worldwide Trade Partners) has been continuing its stellar growth, in utter defiance of the Great Recession. Revenue has climbed some 58 percent, its headcount has doubled (from 45 to 90), and it's expanded its global footprint to 40 offices in 29 countries. It's also got its eyes set on Latin America and Europe. Consulting spoke with co-founders Michael Minihan and Ian Boccaccio, who say their efforts to set themselves apart from the crowd and, in their words, invert the typical Big Four project management structure, are among the many factors contributing to their success.
Consulting: Can you give us an update since the Small Jewels award?
Minihan: Since receiving the Small Jewels award in 2009, WTP Advisors has grown by leaps and bounds, in every direction. We have consistently increased revenue over the past four years, and have expanded service lines and personnel (in many instances attracting top talent from our competitors). Now, in addition to core U.S. and international tax services, we offer Transfer Pricing, as well as super high value service offerings, such as Interest and Penalty Advisory, and global credits & incentives. We also acquired a capital markets practice which has since spun off under the brand name "Avalon Lake Partners" to be the preeminent firm in the hedge fund operations space. We are also a truly global firm. Beginning in 2010, WTP's growth benefited from the creation of a global referral and affiliate program throughout the world's major economic markets. Currently we have expanded our footprint to 40 offices throughout 29 countries worldwide.
Consulting: How have you managed to maintain growth through the bad economy?
Boccaccio: In the markets where WTP Advisors has flourished, we have changed the landscape of tax and business advisory services. How? Because we live and breathe the business model that sets us apart from our competitors. WTP Advisors has inverted the typical Big Four project management pyramid structure. Most large firms will staff client engagements with a few experienced senior staff, and fill in the rest with new hires, effectively passing the cost of training along to the client.
At WTP, we have turned this model upside down and staff all projects with more seasoned professionals than with junior staff, and this business model in turn feeds our company culture. WTP employees understand that they are a part of something unique in the industry, and receive unparalleled opportunities to shine and advance their skills. They are part of a culture in which the partners often bill as many hours as the junior associates. This sense of an "all hands on deck" community instills a tremendous amount of pride in our people and our work.
As our footprint grows, so does our impact on the overall industry. Our U.S. headcount has doubled since 2009 (from 45 to over 90 employees today), and we have created an operating model with one of the industry's highest employee retention rates. WTP has an effective compensation model because we share firm profitability with staff at every level.
Consulting: Is there a ceiling in sight for WTP's growth? Do you expect to keep up this momentum?
Minihan: Our goal is to become a worldwide tax and business advisory powerhouse, so we'd prefer not to set any sort of ceiling or cap on our future growth. The momentum has been thrilling, but we feel it's also sustainable given the marketplace and the appetite for firms like ours that deliver on the promise of the highest value consulting services. We are thriving because we do the right thing for our clients: we deliver tax and business advisory experience, technology, and expertise personally, so they can make smarter decisions.
Consulting: What are some challenges clients are facing today?
Boccaccio: As WTP enters its eighth year in the marketplace, we have seen a material shift in how many extremely large multi-national corporations view third party resources. The golden age of consulting—those years not too long ago where companies spent huge amounts of money on projects that were handed off to pools of recent college graduates—are over. Now, companies expect high quality work for reasonable rates, and with complete access to a firm's leaders. More and more, we are witnessing multinationals forego big brand-name consultants and instead, opt for smaller outfits who are just as qualified (if not more so) than their big competitors, and can offer a more hands-on approach, at very competitive rates. WTP Advisors was born out of, and exists currently, to rise to the demands of the current economy. Companies are keeping closer tabs on the bottom-line impact and value that their consultants provide, and only those consulting firms that demonstrate their worth will stay in the game.
Consulting: What's in store?
Minihan: WTP Advisors will continue to grow, especially amongst our affiliates. We aim to add at least six more affiliate firms in Latin America and Europe this year. We also continue to land great engagements with some of the world's best companies.
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