How to Set Terms and Limits for Goodwill Payouts
And two considerations for the working partners.
By Marc Rosenberg
Retirements & Buyouts
The vast majority of firms pay retirement benefits over a 10-year period. We occasionally see five to seven years at lower payout levels.
Some firms under $10 million adopt five-year payouts for goodwill, reasoning that because five-year payouts are common for the purchase of a CPA firm, the same term should apply to their own buyouts.