and 6 reasons that firms struggle.
by marc rosenberg
retirements & buyouts
at cpa firms, the concept of requiring partners to retire at a certain age has been around for decades. the mandatory requirement policy has its roots in the “one-firm” concept of managing a firm: the interests of the firm should always be more important than the interests of any individual partner.
more on retirement: you want goodwill payments? give proper retirement notice | retirement plan funding? what funding? | compromise is in order for some goodwill payouts | when retiring partners take a specialty with them | if clients leave, do you reduce retirement benefits? | the multiple of compensation method, fully explained | 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 | 4 ways to decide how to pay out capital | partners may balk at guaranteeing retirement obligations
why a mandatory retirement policy is good for the firm:
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