plus the impact of ownership percentage on partner issues.
by marc rosenberg
how to bring in new partners
let’s go over structuring a new partner buy-in step by step.
more: what buying in actually means | why buying into a firm is such a great investment | the business side of cpa firms | it shouldn’t take so long to make partner | three types of skills you need to become a partner | seventeen basic expectations of partners | nine ways to woo a prospective partner
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1. calculate the value of a cpa firm as accrual basis capital plus goodwill. goodwill is commonly expressed as a percentage of the firm’s annual revenue. this total value should not be given away to anyone without being paid for. bringing someone in as an owner in a profitable, viable business for little or no buy-in makes no sense.