Three big issues must be decided.
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. This amount can be in excess of a million dollars at many firms. Receiving a retirement buyout is one of the major reasons becoming a partner is so lucrative.
MORE: 11 Best Practices for Partner Compensation | Fifteen Steps to New Partner Buy-in | What Buying In Actually Means | Why Buying Into a Firm Is Such a Great Investment | Four Philosophies for Managing a CPA Firm | How Partner and Staff Actions Impact Profits | The Business Side of CPA Firms
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The flip side of this is that new partners must agree to buy out older partners when their day comes. Therefore, any plan for bringing in new partners must include a provision for a partner retirement/buyout plan.
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