five reasons for one, eight for the other. and they’re not all created equal.
after studying some 700 firms, marc rosenberg has some fairly hard-and-fast rules about how to bring in new partners. here, he delivers five reasons to lean toward deciding on bringing in traditional equity partners and eight reasons for making them non-equity partners. all things being equal, they aren’t.
one of the signs of a good partner.
by marc rosenberg
how to bring in new partners
a standard section in well-written partnership agreements is a non-solicitation agreement. this term is a bit confusing. it really should be called the “if you leave and take clients with you, you have to pay for them” section. but it means more than that. read more →
by marc rosenberg
author of how to bring in new partners
most firms vote on a one-person, one-vote basis despite varying ownership percentages. there’s good reason why. read more →
by marc rosenberg
author of how to bring in new partners
how will the duties and responsibilities of a manager change when he or she becomes a partner in the firm?
unfortunately, this is one of the grayest areas in bringing in new partners. common sense must prevail. ideally, there should be a gradual transition for new partners from their last two to three years as a manager to the first few years as a partner. during their last few years as a manager, they should:
and the difference between smaller firms and larger firms.
by marc rosenberg
author of how to bring in new partners
maybe you’ve noticed this too: many midsize and larger firms retire partners at one times annual fees or less, while smaller firms are often sold for well over that.
how can you reconcile those two very different valuations? the answer, of course, is in the math.
here are the nine essential calculations… read more →
and the two methods used by the smartest firms.
by marc rosenberg
author of how to bring in new partners
regardless of whether it is a corporation or a partnership, there is a substantial amount of accrual basis capital in a cpa firm. all the partners “own” some portion of that capital.
there are at least three methods for determining how much capital each individual partner “owns.” one of them should be avoided like the plague. read more →
five issues that should never be part of the calculation.
by marc rosenberg
author of how to bring in new partners
contrary to popular wisdom, the most successful cpa firms are finding that the fundamental and critical tactic in bringing in new partners begins with severing, as much as possible, the link between the ownership percentage and these five issues: read more →
today’s 5 essentials.
when cpas are invited into a firm’s partnership, their natural first question is, what’s in it for me? marc rosenberg, author of how to bring in new partners, reveals how the best firms are responding with five key deal points. read more →
the old formulas don’t work anymore.
by marc rosenberg
author of how to bring in new partners
at one time, calculating and structuring the buy-in for a new cpa firm partner was fairly simple and uniform across the profession. but things have changed. until recently, you’d start with the total value of the firm, defined as accrual basis capital, and then add goodwill, commonly expressed as a percentage of fees.
so, let’s run the numbers and see why firms are looking for alternatives and what they’re finding. we’ll look at trends in personal risk profiles, ownership percentages, how the buy-in is paid, guarantees to banks, the number of years to pay the buy-in, who the buy-in is paid to, and last, but not least, sweat equity.
it’s easier and more fun than it looks.
by marc rosenberg
it’s common for cpas to be uncomfortable with practice development. but it’s critical to the success of the firm. everyone doesn’t need to be a rainmaker. here are 18 ways that shy, introverted people can help their firms grow: read more →
by marc rosenberg
cpa firm management & governance
no organization can flourish over the long term without effective communication among the leaders. cpa firms are no exception. here are four signs your firm probably has good communication among partners: read more →
by marc rosenberg
how cpa firms work
the cpa’s training is geared to identifying problems that clients are experiencing and giving recommendations for improving the company. this leads to producing what is known as the “oh wow” feeling from a client. efforts to super-please clients are what it takes to satisfy clients’ needs, retain them year after year and get them to make unsolicited referrals of other companies.
here are 20 things that cpas do that their clients rave about: read more →
six guesses. only one right answer.
by marc rosenberg
the rosenberg survey
of the 45,000 cpa firms in the u.s., an elite group of these firms, referred to as the top 100 (in terms of annual revenues), is publicized by several media groups. what do they have in common? what are they doing right? read more →