Triangulation: The appetite among professional services firms to set a Raleigh-Durham foothold is undeterred

Triangulation:

The appetite among professional services firms to set a RaleighDurham foothold is undeterred

Strong and diversified industry verticals, a highly dynamic entrepreneurial and tech space, a top-tier research sector and a vibrant higher educational mosaic are the foundation for Raleigh-Durham’s long-term growth — and professional services firms have taken note to establish a foothold in the area.

Setting up an entity in the Triangle region secures access to 7,000-plus companies that could need advice from legal, financial and accounting experts to assist them in navigating both the pandemic and the emerging challenges as the economy recovers from the crisis.

Out of crisis, comes opportunity, however, and the Triangle’s established professional services businesses and its newcomers will be looking to capitalize, particularly as regulations and legislation evolve in the new landscape and in the context of the accumulated dry powder private equity and venture capitalists are ready to unleash to tap into the clear-cut returns that the region offers.

Landscape The Triangle hosts more than 2 million residents, 7,000 companies, 700 international companies and offers the lowest corporate tax rate in the United States at 2.5%. Those reasons alone are enough for the professional services industry to thrive. But they aren’t the only factors.

North Carolina was named the #1 Best State for Business by Forbes for three years in a row, from 2017 to 2019, while it also counts more than 337,000 business and financial services workers. The trend continued with a record-breaking 2021 as 96,000 new business filings were documented across the state between January and June, an 80% increase compared to the same period in 2020. North Carolina’s resilience has also been on display: 89% of the businesses created in early 2020 are still operational, despite the pandemic.

In a clear benchmark for the industry, wealth management firm Balentine’s Raleigh office surpassed $1 billion in assets under management (AUM) in the middle of the COVID-19 pandemic. Data also support the sector’s strength. In June 2021, the U.S. Bureau of Labor reported 1.12 million jobs in the legal sector nationally, a 2.9% increase compared to June 2020. The rise came amid a surge in companies and businesses looking for expert advice to navigate not only the pandemic but also the plethora of new legislation drafted to deal with it, particularly in terms of financial aid programs and handling remote work.( )