non-traditional services must be ‘institutionalized’ to be valuable.
by marc rosenberg
retirements & buyouts
the only reason firms pay goodwill-based retirement benefits is to retain the clients managed by the retiring partner.
more on partner buyouts: if clients leave, do you reduce retirement benefits? | why you’ll get less from your partners in a buyout than you might by selling the whole firm | eat what you kill? then maybe ‘book of business’ is for you | the multiple of compensation method, fully explained | 5 points to consider when paying out goodwill | clients leaving? time to reduce retirement benefits | partners may balk at guaranteeing retirement obligations
if a firm were 100 percent certain that all of a retiring partner’s clients would leave the day after the partner settled in at the retirement community, i doubt the remaining partners would be terribly motivated to sign any retirement checks.
to read the full article
