Buyout: The Flip Side of Buying In

Three businessmen shaking handsPlus 9 reasons why goodwill averages 80 percent.

By Marc Rosenberg
How to Bring in New Partners

One of the benefits that new partners receive in exchange for their buy-in is that they will receive a buyout when they retire.

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The flip side of this is that they must agree to buy out the older partners when they retire. Therefore, any plan for bringing in new partners must include a provision for a partner retirement/buyout plan.