How long do you want your firm to last?
By Marc Rosenberg
The Rosenberg Practice Management Library
Two-thirds of partner agreements include a mandatory retirement provision. This provision usually requires partners to give up their equity but allows them to continue working in some fashion. A common stipulation is that if a “retired” partner wishes to continue working, either full- or part-time, this must be approved annually by the other partners. But with the Covid crisis, annually may come sooner than expected.
MORE: Three Tough Questions in Partner Buyouts | Is Mandatory Retirement a Best Practice? | Merging in Sellers: What You Need to Know | Take Yoda’s Advice on Strategic Planning
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