Industry
Professional Services & Government Contracting
Utilisation, pricing and contract economics for businesses built on specialised people.
Thyor advises engineering, consulting, accounting, media, lobbying, political consulting and government-contracting businesses on FP&A, pricing, partner economics, tax and ownership decisions.
Sector economics
What matters financially in this industry.
Professional-services firms sell expertise, time and access to specialised talent. Profitability therefore depends on utilisation, leverage, pricing, subcontractor economics and the speed with which delivered work converts into cash.
Government contractors add indirect cost structures, contract terms, procurement cycles and compliance requirements that can make ordinary management reporting misleading if it is not designed around the actual contract economics.
Thyor works with consulting, engineering, public-affairs, lobbying, accounting, media and government-services businesses on CFO capability, FP&A, tax, profitability and transactions.
Current pressures
Where economics, capital and operating reality are moving.
- 01
Talent is the principal cost base
This pressure changes the operating assumptions behind the plan and needs to be visible in the financial model.
- 02
Backlog does not always convert to cash
The issue can remain manageable until growth, financing or a transaction raises the standard of evidence required.
- 03
Pricing often lags cost-to-serve
The financial consequence depends on timing, concentration and management's ability to change the underlying operating driver.
- 04
Partner and owner decisions shape capital
The relevant exposure should be measured before it becomes a board, lender or investor surprise.
Decisions
The questions management and capital providers have to resolve.
- 01
Client profitability
Measure margin by client, project, contract and delivery team.
- 02
Pricing and utilisation
Set rate, leverage and capacity decisions on real economics.
- 03
Contract and cash
Forecast backlog conversion, billing and collections.
- 04
Ownership and succession
Value and structure partner admissions, exits and transactions.
Representative situations
How the advisory work tends to show up.
Government-contractor reporting reset
Project, indirect-cost and cash reporting rebuilt for management decisions.
Advisory-firm pricing review
Cost-to-serve and utilisation analysis supported a new pricing architecture.
Next step
A professional services situation to discuss?
Describe the economics, constraints and decision in front of the business. The firm will be direct about where it can add value.