Non-traditional services must be ‘institutionalized’ to be valuable.
By Marc Rosenberg
Retirements & Buyouts
The only reason firms pay goodwill-based retirement benefits is to retain the clients managed by the retiring partner.
MORE ON PARTNER BUYOUTS: If Clients Leave, Do You Reduce Retirement Benefits? | Why You’ll Get Less from Your Partners in a Buyout than You Might by Selling the Whole Firm | Eat What You Kill? Then Maybe ‘Book of Business’ Is for You | The Multiple of Compensation Method, Fully Explained | 5 Points to Consider When Paying Out Goodwill | Clients Leaving? Time to Reduce Retirement Benefits | Partners May Balk at Guaranteeing Retirement Obligations
If a firm were 100 percent certain that all of a retiring partner’s clients would leave the day after the partner settled in at the retirement community, I doubt the remaining partners would be terribly motivated to sign any retirement checks.
TO READ THE FULL ARTICLE
