How an MAS service pulls in referrals

Howard L. Stone, managing partner of Altschuler, Melvoin and Glasser (AM&G), has developed a management advisory service (MAS) for commercial lenders that provides field investigations of: 1. loans to emerging businesses, 2. loans secured by liens on assets that are not controlled on a day-to-day basis, 3. loans to companies whose internal controls may be deficient, and 4. loans to companies with complex accounting systems. While this service is not a major part of AM&G's business, Stone sees it as an introduction to many bankers and their clients. Part of AM&G's strategy in initiating this service was the need to keep its audit staff busy all year. The program is marketed with direct mailings to bankers, a seminar, and a luncheon program. The firm's investment in the MAS was less than $25,000. In its first 3 months, 3 investigation engagements were undertaken, and 3 audit referrals were generated. Plans have been made to market the service nationally.