Dr. Ronnie Holmes
Case Study: Boomer Consulting, Inc.
Introduction Case 9.1 involves Boomer Consulting Inc. beginning with the early years when the organization, as a division, was a small regional CPA firm of Varney & Associates headed by a single partner, L Gary Boomer. As time went by, and the division’s revenue grew Varney & Associates separated the consulting and accounting practice, creating a wholly owned subsidiary, which continued to be headed by L Gary Boomer, named Boomer Consulting. Eventually, Boomer transitioned from a partnership, to the entrepreneurial of his own company, specializing in technology and firm management as a facilitator, speaking internationally, on hot-button …show more content…
The use of Leverage The concept of leverage has different meanings depending on the context. In this particular case, as per the text, “leverage is the ratio of the number of professional staff members to the number of partners, an essential factor in determining the profit-per-partner in other words the staff-per-partner ratio of a firm (Fitzsimmons, 2014, p.260). Gary Boomer started out as the head of the division of a small regional firm of Varney & Associates. Varney 7 Associates eventually separated the consulting and accounting practices, establishing a wholly owned subsidiary, headed by Boomer and named Boomer Consulting i.e. Varney & Associates retained complete control and ownership. However, in 1997, “Boomer bought out his partnership agreement and as CEO transformed BCI into an entrepreneurial company” making him the sole decision maker regarding services rendered. If I’m understanding this correctly, nothing is achieved by Boomer regarding the concept of leverage due to the fact that staff-per-partner ratio is not a factor. Many professional service firms are organized as