Peter
Rochester,#2UPDATE EX-employee responds
Fri, December 31, 2004
I am an ex-employee of IPA Advisory and Intermediary division and the one who initially visited this client.
First, allow me to say that I worked for IPA A&I for only two weeks.
Second, allow me to say that Mark was a gentleman.
In Training at A&I we are taught that if you are in this business for the money, it is the wrong reason! So, in training for this position of regional director I really thought that I was there to help the Small to Medium business owner in raising money or to sell/buy a business.
In reality, this is far from the truth and at the same time is the truth, allow me to explain!
At A&I the trainees are taught that business owners are not very objective people and for the most part this is correct. Business owners have large egos and are usually courageous people because they have the chutzpah to even start a business. This for the most part makes them less objective because they are very close to the day-to-day happenings and they really do not see that the business is failing, banks turning them down, not prepared to sell the business, etc.
Usually, the business owner tries to do things that they are not very good at when they should leave it to someone else. Case in point, raising money for debt or equity OR selling their business. Doing this is a full time job, yet the business owner will try and run his day-to-day business and also try and raise money. I don't care how smart a business owner is or how many hours they work they cannot do both jobs. And this is where A&I comes in, we were supposed to help them and in my mind this was admirable!
Where the A&I tactics fall short is that each client visit is a hard and confrontational meeting. As a regional director I was suppose to take the lead and make sure the business owner knows that I am there, I am in charge and you (the owner) need me more than I need you!
We are supposed to convince the owner that having a business analyst come in is the best thing that they can do. If the owner puts up resistance we are allowed to use any tactic at our disposal, including accusing them of being irrational.
Here is an example of what A&I allows the regional directors to say to potential clients:
I don't mean to be offensive, but has your ego always gotten in the way of you making rational decisions?
I don't mean to be offensive but who's running your business the economy or you?
Basically, we are there to intimidate the owner into signing on with A&I for $750.00 - $3000.00 for an analyst to come in, right then and there! If we encounter resistance we are to either blow up the meeting by pissing them off or just hand them a card and say have a nice day and leave!
I truly believe that A&I could be a very good option for a small to medium business owner if it was not such a hit and run operation. On top of that, what the owner initially gets for their money is not worth the paper it is written upon.
In my two weeks with the company I had visited many clients that have had problems with IPA in the past, to the tune of losing tens of thousands of dollars and getting nothing for it. In actuality, my job was to get the IPA/A&I foot in the door and they would go after the big money later.
I feel that this is a good business and could benefit the business owners, if it was approached differently by IPA/A&I and not set up like a hit and run operation.
Is this business un-ethical, if it was set up and handled correctly, the answer is NO!!!!
The problem is that this type of business is not regulated and whether it is a George S. May consulting firm or IPA/A&I they do use borderline un-ethical, hard pressure tactics.
The thought is, can a person really deal with an egotistical, irrational, shortsighted business owner who thinks that his accountant can raise money?
First of all an accountants job is to make your business look bad to the IRS to save on taxes. To sell a business or raise money, a professional needs to make the business look attractive which is totally contrary to an accountant's role.
So, in essence business owners are the most less objective people that I know, face it some of them are really and truly pompous asses. I personally know some where their businesses are failing but cannot see the forest through the trees and are too egotistical to ask for help..!!!
Does this make the IPA / A&I tactics right, the answer to that is also NO..!!!!!
IPA/A&I could make this business admirable and much more professional but then again dealing with shortsighted business owners is very tough.
Calling business owners names is totally wrong and very un-professional.
My apologies to Mark for the names that he was called.