Steve Shein: The Alternative Small Firms Have Been Waiting For | The Disruptors

Private equity isn’t the only way to scale.

The Disruptors

With Liz Farr

Steve Shein thought small accounting firms need a different option than private equity or the traditional M&A route. So he founded Franklin Alliance, which operates differently from either of those models.  

Unlike traditional private equity models that typically focus on cost reduction and mandate immediate process changes, Franklin Alliance operates as an investment partner with a fundamentally different structure. "We’re trying to build this intentionally, with the goal of being a differentiated partner, specifically for small firm owners who care about things like culture, autonomy, and their firm identity,” Shein explains. 

“We built this platform as an operating company specifically so we’re not a fund,” Shein explains. “It’s backed by venture capital and family offices, which basically means that the profile of the investors that we’ve taken capital from has a longer-term time horizon.” 

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This structure enables what Shein calls a “culture of growth rather than a kind of cost rationalization,” which is a better fit for many small firms. The approach contrasts with acquisitions by regional firms, where acquired firms are generally forced to adopt new processes, workflows, and technology within 90 days.