Professional Advisors Alliance; PAA believes that working with firms in a true strategic partnership offers the best model for success. So we work with you on a consultative basic to help you make the right choices for your practices. If you are a CPA or Lawyer, together we can make a difference. For a free, no-obligation Firm Assessment, contact me today.

1. Professional Advisor
sAlliance
ChoicesforExpandi
ng
Your Practice in Financial Ser
vices

2. value
convenienceneedsopportuniti
es
grow
expand competitive
valu
e
clientretention

3. one
Why Expand Your Practice in Financial Services
?
You are living through an epic period of change in your profession.
Across the United States, accounting firms of all sizes are building on their “traditional
services” by becoming financial advisors and wealth managers. This expansion is being
driven by structural changes in the CPA profession, new regulation and emerging
opportunities.
According to the CPA Vision Project: 2011 and Beyond from the American Institute
of CPAs (AICPA), “CPAs must rapidly develop new skills, gain knowledge, and develop
new competencies in broader areas of business practice so they are able to jump
the experience curve.”
Almost all CPAs are aware of the changes and opportunities. But this leaves one critical
question: Why should YOU consider expanding YOUR PRACTICE in financial
services?
At Professional Advisors Alliance (PAA), we believe the best answer may be shorter
and simpler than you think.
Because You Have Choices.
Our first goal at PAA is to help you understand the range of choices you have to expand
efficiently in financial services, while preserving the core competencies and key values that
have made you successful.
We believe that when you understand the choices – and their relative benefits and
drawbacks – you will be able to make profitable decisions for your firm’s future.
One choice you can make right now is to consider the potential of building stronger client
relationships, expanding market share and generating increased revenue for your business.

4. two
Consi
der the Opportunities – Imagine the Growth
Here are ten important reasons to consider expanding your firm’s financial services.
1. Increase your value to clients and strengthen client relationships – Industry
surveys show that CPAs are the trusted advisors, from whom clients want to receive
financial advice and analysis. CPAs who offer financial services can address a wider
spectrum of clients’ needs and provide solutions to important issues.
2. Meet demand for objective advice –
Today clients are more aware of financial sales
tactics and conflicts-of-interest. They want and
need professional integrity and objectivity, and
you can provide it.
3. Offer one-stop services – For today’s busy,
on-the-go clients, the convenience of having
financial services delivered through one source
can save time and money. You can be that
one-stop source.
4. Deliver holistic planning on a continuous basis – Consolidating clients’ financial
lives can increase your understanding of their total financial pictures. It also can strengthen
client relationships through continuous planning and periodic reviews.
5. Increase your firm’s revenues and profit margins – Financial services expansion
can help you choose and implement value-added services. You can control fixed and
variable costs, generate recurring revenues and increase profitability year after year.
CPAs are beginning to play a major
role in the delivery of financial
services. Eighteen CPA firms have
exceeded $1 billion in investment
assets under management, and 93
firms have exceeded $100 million.
Source: July 2008, CPA Wealth Provider

5. three
6. Reduce tax impact on clients’ assets and unearned incomes – When you better
understand each client’s total financial situation, you will have greater ability to control
income and estate tax impact.
7. Increase value and create exit strategies for partners – The value of a financial
services affiliate can grow into a significant asset for partners over time and become a key
component of retirement cash-out strategies.
8. Generate more predictable income – Asset management fees, planning fees, trail
commissions and insurance renewals provide a predictable base for income growth.
Recurring income can also enhance the valuation of partners’ interests based on future
discounted cash flows or earnings.
9. Competitively position your firm – You can protect your “traditional accounting”
services and relationships against financial services firms encroaching onto your turf,
while increasing client retention with periodic reviews and portfolio updates.
10. Expand your network and provide growth opportunities for employees –
Your network of affiliated professionals will expand through collaborative “case teamwork.”
You can also develop challenging career
tracks and growth opportunities for your
firm’s emerging talents.
According to the AICPA, a CPA firm with
$500,000 in annual billings has clients
with an estimated minimum of $50
million in assets under management.
By capturing only a fraction of those
assets, and their future growth, CPAs
can generate a solid base of predictable
fee-based income.

6. four
Know
th
e
Keys to Success – Make the Right Decisions
You have the benefit of avoiding the “learning curve” that many other CPA firms have
experienced while expanding their practices in financial services. Specifically, you can
adopt the key practices that successful firms consistently mention as important.
PAA has studied these factors extensively and can help you understand them better.
Keys to Success
• CPAs choose comprehensive services and a broad spectrum of products and services –
diversification avoids disappointments in any one area.
• CPAs expand with a clear focus on their clients’ needs – they offer problem solving,
not product selling.
• A marketing plan is developed for introducing financial services to segments of the
CPA firm’s clients in logical sequence, using effective communication channels.
• CPAs have ready access to proven professional advisors and strategic alliance partners –
they don’t try to “do it alone.”
• All active partners of the CPA firm make a total commitment to expansion.
• The firm’s partners have clear expectations for their roles, responsibilities, and
revenue splits.
• CPAs create strategic alliances with flexible structural options – “room to grow
and change.”
• Thought is given to the legal structure and service delivery infrastructure of the
financial services unit.

7. five
Four-Step Strategic Planning
Process
Four Steps to Strategic Decisions
Understanding the keys to success will help you follow a disciplined process in evaluating
expansion decisions, including: choosing financial services, selecting an Alliance Partner, defining
revenue sources, and settling on a legal structure.
The recent Moss-Adams study recommends the four-step process described in the diagram below.

8. PAA helps CPA firms understand
and evaluate a variety of
choices for expanding their
service menus. Often, the
key to a successful expansion
is finding the right mix of the
services – one that captures
the strengths of the CPA firm,
the needs of its clients and the
goals of its partners.
The
W
ealth
Management Spectrum
six
Wealth Building
Protection
Wealth
Management
0 - 20 20 - 40
• Alternative products
to traditional deposits
(mutual funds, annuities,
stocks)
• Debt reduction
• Insurance
• Retirement savings
• College savings
• Budget planning
• Portfolio approach
to holdings
• Align risk/return
strategies
• Insurance planning
• Retirement savings
• College savings
$0
NetWorth

9. seven
Wealth
Maintenance
Wealth
Distribution
Wealth
Transfer
65 - 8540 - 65 85 -100+
• Preservation of principal
• Growth income
tradeoffs
• Insurance planning
• Retirement savings
• Investment restructuring
• Cash flow
• Needs analysis
• Estate planning
• Planned spending
• Insurance planning
• Long-term care
• Asset utilization
• Tax planning
• Legacy planning
• Multi-generational
planning
• Insurance planning
• Charitable giving
• Business succession
• Medical needs analysis

10. eight
W
hi
ch
Business Model is Right for Your Firm?
PAA believes that CPA firms should make the choices that are in their best interest for
responding to changes and expanding services. We do not try to dictate service expansion
menus or business models. Instead, we work with you as consultants to help you
understand, compare and choose among viable options. While there are many different
business model variations, most fall into these three basic categories:
1. Referral – Your firm and an Alliance Partner provide cross-referrals to each other’s clients.
• This is the simplest and most casual method to establish, with few requirements.
• Without proper licenses, your firm may not share in commissions or fee-based revenues.
• Your firm’s ability to offer financial services and products may be restricted.
2. In-House – Your firm (or its partners) becomes licensed in securities, insurance and/or
registered as an Investment Advisor or Investment Advisors Representative. The firm then
offers a range of financial products and services to its clients and receives the resulting
compensation.
• You may wish to call upon the expertise of a relationship partner (such as an insurance
or estate planning expert) to help close a complex case. But there is no obligation to
share any cases, clients or revenues.
• This approach works best for larger CPA firms that can commit adequate staff and
resources to their own financial services units.
3. Partnership – Your firm and a financial services Alliance Partner form a written
agreement to set up a new joint venture firm or unit. The agreement specifies how you
will share costs, allocate manpower, and split revenues.
• The CPA firm refers clients to the on-site unit for specific financial services.
• The unit has its own profit-loss statement and usually its own marketing name (DBA)
or brand.
• This approach has proven very successful among many fairly small CPA firms that need
technical support and a proven service-delivery infrastructure, but don’t wish to build
their own financial services units from scratch.

11. nine
Benefits of Partnership
Entering into a partnership model offers the opportunity to negotiate an attractive
arrangement with an Alliance Partner and to ensure that you have a clear understanding
of the terms of the relationship. And ideally, both participants should agree that the
strategic alliance can be adjusted or revised at periodic intervals.
A partnership also provides you with:
• Control over the revenue and profitability targets you wish to achieve.
• Flexibility in naming and positioning the unit, so that it aligns with your values.
• Opportunities to share the partner’s technical expertise and “learn as you grow.”
• Control over the ethical and service-delivery standards of the new unit.
• Selectivity in referring specific clients to the unit.
• Ability to decide how far in each client’s planning process your firm wishes to
stay involved.
• Ability to monitor clients’ satisfaction
with case results.
And, perhaps most importantly, the
partnership model gives you the
confidence of knowing you aren’t
venturing into this initiative alone.
You rely on the knowledge, expertise
and networks of your Alliance Partner.
According to a recent survey, 75% of
CPAs said “creating strategic alliances
with experts in life insurance and
investments” is an important factor
that contributes to success in financial
services expansion.
Source: Accountants as Wealth Managers

12. ten
AComprehe
nsive Consulting Process to Guide Your Way
PAA begins with a comprehensive consulting process that helps CPA firms evaluate
their options for expansion. This process can help your firm answer such questions
as the following:
• What are the most important needs of our clients that this venture can address?
• Which new service(s) should we offer to our clients – and in what order?
• What resources should the firm plan to commit to this effort?
• What is the best way to structure the unit’s business model and identity?
• What is the best way to meet licensing, continuing education and training
requirements?
• What is a realistic revenue model and profit goal?
• What are the key risks in expanding? How can they be managed or covered?
• What core strengths should we look for in selecting an Alliance Partner?
There is no cost or obligation for your firm to participate in the PAA consulting
process, which concludes with a written proposed plan of action.

13. eleven
Start-up and Integration Help
After your firm has agreed on a business model and terms, PAA provides further
assistance in helping your unit get “up and running” quickly and smoothly.
Our start-up and integration services include:
• Guidance and support in meeting licensing and/or registration requirements.
• Orientation and training for the CPA firm’s partners and/or employees.
• Help in understanding, accessing or integrating computers and systems.
• Consultations with your partners to set standards and expectations.
• Support in implementing marketing and client communication strategies.
Our ultimate goal is to help you implement:
• The RIGHT business model for your firm’s needs.
• An EFFECTIVE financial services delivery system that meets your standards for
ethics, objectivity and integrity.
• A PROFITABLE business entity capable of generating consistent revenues and
bottom-line results, in line with your expectations and planning.

14. The
Time is Now...
twelve
Many clients already think of their CPA as their “Primary Advisor.” They want their
CPA to provide:
• Independent and objective advice
• A long-term trusted relationship
• Continual and responsive service
• Comprehensive advice on financial situations, and the ability and expertise to
provide top-notch solutions
• A full range of services, and the knowledge to make them work to achieve
their goals.
Professional Advisors Alliance can help your firm systematically begin the journey
into financial services.
Your clients have been waiting...
...how long will they wait before
looking elsewhere?

15. value
convenienceneedsopportuniti
es
grow
expand competitive
valu
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clientretention

16. About Our Program
Professional Advisors Alliance (PAA) is a business
development program for CPAs designed to help you
understand the best ways to include financial services
in your practice, strengthen your client relationships
and increase your revenues and profits.
We also can help you comply with regulations,
licensing requirements, continuing education rules
and professional ethics.
Our focus is always on helping to maintain your
independence, objectivity and professional integrity.
PAA
PAA
PM1305 11/08
A8JC-0826-05
Securities and investment advisory services offered through Hornor, Townsend Kent, Inc. (HTK),
Registered Investment Advisor, Member FINRA/SIPC.
600 Dresher Road, Suite C1C, Horsham, PA 19044
800-225-7637
www.htk.com