some methods can damage the firm.
by marc rosenberg
retirements & buyouts
cpa firms use a number of methods to calculate the goodwill payable to a retiring partner.
here are three less commonly used.
1. ownership percentage
this method has clear detriments. firms should look at goodwill benefits as deferred compensation. both current and deferred compensation should be performance-based; ownership percentage is not performance-based and is often highly illogical.