Publications
Publications
- February 2003 (Revised August 2004)
- HBS Case Collection
Note on Valuation-Compensation Tradeoff in Professional Service Firm Acquisitions
By: Ashish Nanda
Abstract
This case highlights the tradeoff between valuation ascribed to professionals at the time of a professional services firm (PSF) acquisition and the postacquisition compensation of these professionals. It emphasizes how a high valuation at acquisition carries with it the requirement to lower professionals' compensation postacquisition.
Keywords
Citation
Nanda, Ashish. "Note on Valuation-Compensation Tradeoff in Professional Service Firm Acquisitions." Harvard Business School Background Note 903-111, February 2003. (Revised August 2004.)