pay & compensation

forget “one times fees” for goodwill.

by marc rosenberg
retirements & buyouts

one of the first and most critical decisions in creating a partner retirement plan is the overall valuation of the firm.

more rosenberg: what smaller firms must do to become firms of the future | when managing partners can’t | covid-19, adversity and innovation | 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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the value of a cpa firm has two components: read more →

plus: making the math work.

by marc rosenberg
retirements & buyouts

why are cpa firms deficient at succession planning?

it is abundantly clear that cpa firms have succession planning challenges. partners overwhelmingly prefer the exit strategy of passing on the firm to younger partners vs. merging out of existence. but history shows that the vast majority fail at moving their firms into the next generation. what holds them back?

the answer lies in the classic pogo cartoon line: “we’ve seen the enemy and the enemy is us.” read more →

valuing a cpa firm for partner retirement purposes is much different than a valuation for merger purposes.

by marc rosenberg
retirements & buyouts

profitable, attractive firms, generally under $2 million, sold in a market with many potential buyers, will often fetch 110 percent to 150 percent of fees.

if this is the case, why do cpa firms value goodwill for retirement purposes at no more than 100 percent of fees and usually, 80 or 90 percent of fees? here are six good reasons why:

read more →

9 factors that ensure retirement plans will pay off.

by marc rosenberg
retirements & buyouts

when a partner group crafts their firm’s partner retirement plan, they are hopeful that the plan will play an important role in their financial futures. they are guardedly optimistic that their buyouts will be realized.

but the path toward the retirement payday is a perilous one. many actions are necessary and a number of obstacles must be overcome for a firm’s partner retirement plan to pay off. read more →