ACKane Leading Arthur Andersen’s Push for Net Clients

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As the new managing partner at Arthur Andersen’s Los Angeles office, Andrew Kane has a much bigger job on his hands than just overseeing a staff of 1,300 people.

The Big Five accounting and consulting firm is making a worldwide push for a bigger piece of the digital economy, and Kane’s mission is to infiltrate L.A.’s booming high-tech sector on as many fronts as possible, from e-business consulting to direct investment in startups.

“We want to get our hands all over the New Economy,” said Kane.

Earlier this year, Chicago-based Arthur Andersen unveiled a $500 million corporate venture fund to be invested through its management consulting practice in Internet and tech startups.

No local deals have been struck yet, but Kane says the Los Angeles office has had a “tremendous” response to the venture fund and is currently in discussions with several area Internet companies.

In addition to direct investments, Kane plans to carve out an additional niche by molding Andersen services to meet the unique needs of local tech clients like Stamps.com in Santa Monica and Rightstart.com, a Westlake Village site that sells children’s educational products and toys.

“New Economy companies create value in a different way,” said Kane, pointing out that the market capitalization of many Web companies is based on factors like their customer base, workforce or business model instead of traditional measures like projected earnings.

Accordingly, Andersen’s e-business practice offers young firms help with formulating business plans and advice on marketing themselves. Consultants also help startups plan benefit and compensation packages to retain valued employees.

Kane is a 26-year veteran of Andersen, serving most recently as managing partner of the firm’s tax, legal and business advisory practice in the Pacific region. He has a graduate degree in accounting, finance, law and taxation from the London School of Economics.

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