{"id":36815,"date":"2014-12-25t05:00:05","date_gmt":"2014-12-25t10:00:05","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=36815"},"modified":"2024-08-14t09:36:44","modified_gmt":"2024-08-14t13:36:44","slug":"5-points-to-consider-when-paying-out-goodwill","status":"publish","type":"post","link":"\/\/www.g005e.com\/2014\/12\/25\/5-points-to-consider-when-paying-out-goodwill\/","title":{"rendered":"5 points to consider when paying out goodwill"},"content":{"rendered":"

\"vintage<\/a>how firms decide the goodwill payable to a retiring partner.<\/b><\/p>\n

by marc rosenberg<\/em>
\n retirements & buyouts<\/a><\/em><\/p>\n

there are five factors that need to be taken into account when computing the goodwill benefits due a retiring partner:
\n<\/p>\n

    \n
  1. the gross benefits payable.<\/li>\n
  2. reductions due to (a) non-traditional services that will leave when the partner retires (examples include business valuations and litigation support) and (b) penalties assessed for failure to transition clients and\/or provide the required notice period.<\/li>\n
  3. vesting.<\/li>\n
  4. reductions caused by expulsion, violation of the firm\u2019s non-compete\/non-solicitation provisions or the departing partner joining another cpa firm.<\/li>\n
  5. reductions relating to amounts the departed partner owes the firm such as loans, advances, etc.<\/li>\n<\/ol>\n

    overall calculation of goodwill payable to a retiring partner
    \n<\/b><\/p>\n\n\n\n
    \u00a0\u00a0\u00a0\u00a0 +<\/b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 gross goodwill payable based on one of 6 methodsminus possible reductions for:<\/p>\n