Kudos to the Ministry Of Corporate Affairs (MCA) & Institute of Chartered Accountants of India (ICAI) – President Ranjeet Kumar Agarwal for considering changes to the Limited Liability Partnership (LLP) Act & other measures aimed to enable domestic accounting firms to merge and scale up. This proposed framework would facilitate the aggregation of CA firms, paving the way for them to join forces and create large domestic audit firms on par with the #BigFour in India.
As a Corporate & M&A lawyer, I find this development intriguing and promising. However, the real challenge often lies in the mindset of founding / key partners. Even today, there is nothing stopping existing CA firms from collaborating or forming strategic alliances to drive growth. The true barrier tends to be personal insecurities and a desire for control.
In many #accounting and #lawfirms, once they reach a certain size, there’s a reluctance to bring in new partners. This is often driven by a fear of losing control and a resistance to change. Instead, we sometimes see firms perpetuating outdated old practices rather than innovating.
In India, succession planning means passing the business to the next generation, regardless of their competence, and managing the firm with a handful of loyal employees at lower salaries. This approach has hindered the emergence of larger, more dynamic firms.
Yet, there is a shift happening. Today’s young accountants & lawyers are increasingly open to collaboration, sharing profits, and even ceding some control. They have embraced technology and aspire to be global citizens, balancing work & life effectively by adopting best business practices. Inspired by the professionalism & scale of international firms, they are willing to embrace a new way of working. That’s the way forward!!
I would strongly recommend young, #charteredaccountants, #lawyers, #engineers, #environmentalists & other #professionals combine their strengths to create #multidisciplinaryfirms to address global trends, leading the way in innovative solutions & comprehensive expertise.
Let’s remember while the old may be gold, the new is platinum!