Kelly Partners Group: New Ventures, Operating Structure & Management

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That's quite interesting. It's different from the usual accounting subsidiaries, as you mentioned, trying something novel with your background to integrate it into Kelly+Partners. I'm curious to understand the economics discussed before setting up. What were the targeted economics for the subsidiary and your business? How was it planned to be structured and split?

Yes, it was all agreed beforehand. I believe it's the standard model Brett uses when he acquires new practices. Essentially, he or the holding company, Kelly+Partners Group, would have a 51% stake in my business, and I'd have a 49% stake. I paid a management and administration fee to Kelly+Partners Group for things like office space, IT, and administrative support. The target was to generate about half a million dollars a year in revenue. After deducting costs, I'd be taking home slightly less than half of that, somewhere between 200,000 to 250,000 Australian dollars. That was the initial goal for the first one to two years, and then we'd see where it went from there. However, we wound up within about 18 months of me starting due to my move to politics.

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Could you elaborate on what you received in return for that fee?

The fee covered office space, a desk, a chair, IT equipment like a desktop and laptop computer, a phone, a phone plan, access to boardrooms for meetings in the Kelly+Partners office. It also covered all the tax and accounting work for the business, such as receipting, invoicing, payment of debtors, preparation of financial statements, and so on. It also included access to photocopying facilities. That's probably the main thrust of what was provided.

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How would you rate the evolution of the business over one and a half years? Weighing against your political ambitions, you had a great opportunity. But during that time, what were the significant positives or negatives from a business perspective?

On the positive side, I had access to potential clients and existing clients. Being part of a firm rather than a sole trader gave me credibility, which led to more leads and generations. People felt more comfortable approaching me as part of a corporate entity. I enjoyed the relationships within the Kelly+Partners Group. It felt like an extended family. Brett invests a lot in social networking, corporate retreats, celebrations of significant occasions, annual events, and awards nights. This created a good social camaraderie.

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