here’s what you’re looking for: marc rosenberg

make provisions, or state partnership laws may do it for you.

by marc rosenberg
retirements & buyouts

twenty to thirty percent of all accounting firm partnership agreements have no provision for goodwill-based retirement payments to partners departing due to death, disability, retirement or withdrawal.

more on retirement: the top 10 mistakes in partner retirement plans | 20 new, essential keys for today’s partner retirement plans | you want goodwill payments? give proper retirement notice | compromise is in order for some goodwill payouts | three ways to calculate goodwill payable in partner buyouts, none of them great | the ins and outs of aav for goodwill | 5 points to consider when paying out goodwill | how to set terms and limits for goodwill payouts

they’re in for a rude surprise. read more →

apply this test to your firm’s succession plan.

by marc rosenberg
retirements & buyouts

most multi-partner cpa firms have partner buyout plans that enable partners who leave the firm via retirement, death, disability or withdrawal to redeem their share of the firm’s value.

more on buyouts: 20 new, essential keys for today’s partner retirement plans | clawback and how to handle it | can partners compete after they leave? | retirement plan funding? what funding? | why you’ll get less from your partners in a buyout than you might by selling the whole firm | partners may balk at guaranteeing retirement obligations

over the last 10-20 years, retirement plans have come under more scrutiny as younger partners question whether departing partners are worth the payments due them and whether the firm can afford those payments. staff with near-term partner potential also question whether to commit themselves to making these payments. both of these groups fear that the firm will not be able to survive the retirement of dynamic, rainmaking partners who have tight relationships with their clients.

read more →

a lot is changing fast. here’s what your partner agreement needs today.

by marc rosenberg
retirements & buyouts

let’s take a moment to simply summarize the many critical aspects of a well written partner retirement/buyout plan.

at first glance, those unfamiliar with how a proper plan should be written may find the 20-plus key provisions listed below to be daunting. but i would caution against such thinking.  in my 20 years of consulting to cpa firms in this area, i have been asked to resolve messy disputes regarding every item listed below.

more on retirement: clawback and how to handle it | can partners compete after they leave? | disability is far more complex than death | even partner agreements must face death | 6 ways to leave a cpa firm (retirement’s just 1) | how to juggle tax considerations for partner retirement benefits | two ways to retire, and one’s not pretty | how to transition clients from retiring partners | compromise is in order for some goodwill payouts | why you’ll get less from your partners in a buyout than you might by selling the whole firm | the multiple of compensation method, fully explained

read more →