Macfarlane Gray is aiming to boost its corporate finance division to help reach the accountancy group's goal of continuing growth of between 10% and 15% in each of the next three years.

Although corporate finance is often associated with big banks, high-powered advisers and global companies, Macfarlane Gray's senior managers believe smaller organisations should consider the possibility of raising equity or taking on debt to fund growth.

Managing partner Greg Callan said the Stirling-based group had numerous firms across its 1500-strong client base that would fall into this category.

"There are so many good small businesses out there that are just keeping their heads down," he said. "They don't win awards, and they are not in the press, but they are really good businesses.

"There are many businesses that operate on bank funding, and somewhere between half a million (pounds) and £1.5m would make a world of difference."

Alan Skilling, senior partner, agreed. Although Macfarlane Gray's corporate finance division has advised on acquisitions, mergers, buy-outs and fundraising since it was established in 2004, he believes the volume and value of these deals will increase as the 73-year-old firm's clients grow into larger organisations.

"Some of our clients have been with us through two and three generations," said Skilling, who began his career with Ernst & Young before joining Macfarlane Gray in 1985.

"There is a huge advantage in coming from a Big Four background, because a lot of our clients have grown over the years. Some of them are now £40m and £50m-turn- over companies."

Corporate finance is expected to account for less than 10% of Macfarlane Gray's estimated turnover of £2.2m in the current year. Although Skilling and Callan would like to see this rise to roughly 25% - with three or four "really good" deals per year - both emphasised that the firm would not pursue growth for its own sake.

"From our point of view, it is self-interest, because we are helping businesses that are hopefully going to be clients of ours for a long time," Callan said. "One factor that can distinguish us from transaction-based businesses is that we can turn around to a client and say Don't do it - it is not the right time to raise that capital or buy that business'. We can always come back to it in a couple of years."

Established in 1934 by Stirling's then Lord Provost, Bill Macfarlane Gray, the firm's early years were dominated by accountancy work in the agricultural sector.

Subsequent growth has seen it expand into a wide variety of areas, from sole traders such as shop owners and taxi drivers, to construction firms, newspaper publishers and the public and charitable sectors.

A series of acquisitions in recent years saw the group spread across offices in Stirling, Edinburgh, Alloa and Callander, but the opening of a new headquarters in Stirling last month has centralised the vast bulk of its operations.

Skilling said putting the group's accountancy, corporate finance, financial services and insurance divisions under a single roof had already yielded benefits.

"What I find is that it has enhanced efficiencies and problem-solving," he said.

"The control aspect of it was important as well," Callan added, "as it has allowed us to fully integrate our operations."

About one-fifth of the new office is currently unused, providing Macfarlane Gray with room for growth, as managers would ultimately like to see turnover peak at around the £5m mark.

"That sort of level is controllable," Callan said. "Beyond that, we would have to change the type of business that we are, and that is something we don't want to do."