In a world where the Big Four accounting firms are synonymous with prestige, power, and predictability, Francesca Lagerberg, CEO of Baker Tilly, is unapologetically charting a different path.
Steering clear of the giant’s shadow, Lagerberg is keen on carving out a unique space for her firm—one that doesn’t aspire to be a “lesser version” of the Big Four, but rather a standout in its own right.
Baker Tilly, which has now climbed its way into the top 10 accounting firms globally, is defying the odds with a remarkable 11% increase in revenue, reaching a record-high of over $5 billion.
This is no small feat, especially in a sector that has seen its giants experience a marked slowdown.
But what is the secret behind Baker Tilly’s success, and what can other mid-tier firms learn from their playbook?
Lagerberg’s approach is refreshingly pragmatic in an industry that often relies on tradition and the tried-and-true.
“Am I ambitious? Yeah, very,” she states candidly, yet with a twist—her ambition isn’t to mimic the big players but to innovate within the space they occupy.
The firm’s strategy hinges on offering what the market currently craves: tailored tax, advisory, and legal services presented with flexibility and a human touch.
One might wonder, is this just another firm offering the same services with a different brand?
Lagerberg would argue otherwise.
For her, the real differentiator is not just the services but the culture.
Baker Tilly fosters an environment that prioritizes people, both its employees and clients.
Gone are the rigid work hours and stoic office culture; in their place is a flexible work environment with unlimited holidays—a stark contrast to the notorious grind of corporate accounting.
Yet, it’s not just internal culture that sets Baker Tilly apart.
The firm is navigating through the contemporary landscape of private equity with a keen eye on the future.
The decision to sell a majority stake to private investment groups Hellman & Friedman and Valeas signifies a bold step into uncharted waters—a move that is both lauded and scrutinized within the industry.
Private equity is no panacea, Lagerberg warns.
It brings a necessary infusion of capital, especially as the firm adapts to technology-driven changes in the industry.
But it also disrupts the traditional partner-driven model, introducing a new level of financial scrutiny and efficiency.
For some partners, this shift is a bitter pill, yet for others, it could be the very catalyst needed for growth and innovation.
The challenge for Baker Tilly, and indeed for any forward-thinking firm, is to remain “future fit” amidst a storm of economic pressures and shifting market dynamics.
The firm must remain agile, ready to seize opportunities as they arise while navigating the potential pitfalls of rapid change.
In an era where the only certainty is uncertainty, Baker Tilly’s approach offers a compelling narrative: that success doesn’t always require being the biggest or the most recognizable.
Sometimes, it’s about being adaptable, understanding the needs of your clients, and having the courage to forge a path that’s distinctly your own.
For Lagerberg and her team, that’s a vision worth pursuing.
