— Michael Porter
Are you the CEO of a one office CPA firm that is doing very well and is beginning to think about opening a second office in a different city through a merger or acquisition? If yes, this Perspective is must reading because history has shown that many one office firms who open up a second office in a different city are disappointed with its integration and financial performance. Establishing a second office is high risk unless:Main Office or “Headquarters”:
Opening a second office in a different geography can be very risky business if the firm’s leadership doesn’t “set the table” and manage expectations of the firm’s partners. Having said that, a successful second office is not that uncommon if the day-to-day leadership is vested in an effective office partner in charge who understands the responsibilities and how to carry them out. Oftentimes, the successful opening of a second office leads to the opening of a third and potentially more offices – all of which can be very fruitful financially.