Partnership Structure & Alternative Business Models
Competition and, in some instances, regulatory changes are leading firms to reevaluate their partnership structures. Traditional models are no longer necessarily appropriate and alternatives must be considered.
In some jurisdictions, regulatory change also allows a variety of alternative business structures to be considered that were previously forbidden. These include multi-disciplinary partnerships, external capital, or sharing profits and ownership more widely, including public ownership. In certain circumstances, these regulatory changes may present opportunities to establish new, more competitive models of practice.
Fairfax works with firms to identify the need for new approaches, to evaluate the cost-benefit and the investment required, and to consider implementation alternatives. The implications, for example in terms of staffing requirements and career paths, also require careful consideration.
Our work draws heavily from our experience with and knowledge of professional firms outside the legal sector that have already gone through similar business evolutions, and provides important lessons for what does and does not work within a professional services environment.