Second Edition

Partners in CPA firms are the greatest examples in the business world of the concept of deferred compensation – their buyout payments when they retire. The amounts paid to each retired partner range from several hundred thousand to $1-3M. Sizable sums indeed! New generations of partners are taking control of their firms. They’re confronted with two factors, among others, that are affecting their buyout: an outdated retirement/buyout plan and the invasion of private equity, causing some firms to rethink how they value their firm.

The following have been ADDED to our newest edition:

• How to protect the firm from unaffordable buyouts
• Behaviors and actions by retiring partners that could cause their buyout to be reduced
• Why valuations used in a firm sale are different than those used for internal purposes
• Dealing with a senior partner who wants to work forever
• How to compensate a part-time retired partner
• New trends including non-equity partners in buyout plans

Other topics include:

• What partners must do to get their buyout money
• How to value a firm’s goodwill
• 6 methods of determining an individual partner’s buyout
• How buyout payments are impacted by client loss
• Vesting
• Notice and client transition requirement
• Why a mandatory retirement policy makes sense
• Tax implications of partner retirement payments
• 6 ways that partners leave the firm: how each impacts buyout payments
• Non-compete and non-solicitation covenants
• The perils of staying silent on payment of goodwill-based benefits

Toolkit

We are offering a proprietary toolkit that includes several key documents from the book your firm can edit and use. The toolkit is a $110 add-on to your book purchase and comes as printable documents to make it easy for you to use immediately.

It includes high-impact, one-page summaries and sample tools for sharing with your partner group such as:

• 6 Methods Used by CPA Firms to Calculate the Goodwill Payable to a Retiring Partner
• Client/Partner Transition Policy
• Sample Non-Solicitation Agreement for Partners

Partner Retirements in Light of Private Equity – Bonus Download

We’ve included a special compilation, Partner Retirements in Light of Private Equity, as a bonus download to accompany your purchase of this book, or for those who purchase Rosenberg Books: The Complete Collection. It is designed to share the latest on what we have learned about partner retirements in light of private equity (PE). We encourage you to share this document with your team.

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