Source: Accounting Today

Retiring partners possess a wealth of knowledge firms want to keep. Here’s a list from August Aquila of Aquila Global Advisors (aaquila@aquilaadvisors.com).

• History of the firm.
• Information about clients.
• Referral sources.
• Values inherent in the firm.

The partnership agreement should provide for a process of transferring clients from retiring partners to successors.

Partners can retire without leaving the firm. Benefits of this for both the partner and the firm include:

• Compensation can be handled several ways:
  • Percent of income from personal production.
  • By project.
  • Payment based on time devoted to the practice.
• Ex-partners can devote themselves to creating value in many areas:
  • Recruiting.
  • Creating a mentoring program.
  • Serving as goodwill ambassadors. An ex-senior partner might serve on the board of a hospital or other nonprofit organization.
  • Merging in other firms.
  • Rainmaking.

From Accounting Today, November 6, 2006, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809. For the complete article, click on the following link: http://tinyurl.com/ya5tcv.