Partner buy in

mikecushing
mikecushing Registered Posts: 2 New contributor 🐸
in General accounting discussion
I have been working for my current practice for 15 years and have been offered a partnership.

The partners set up the practice from scratch some 30 year ago and have never taken on a new partner before.

Does any one have any advice on how to structure and finance such a buy in?

NB. I do not have sufficient personal fund at my disposal to simply agree on a value for the practice and buy 1/3rd.

Many thanks in advance

Mike

Comments

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    Typically the firm would loan you the funds to buy in. These would then be repaid from your profit share meaning that you would be physically taking less cash than the other partners until the loan is repaid.

    Considering the many issues involved I would suggest finding a solicitor experienced in this area.
  • Dean
    Dean Registered Posts: 646 Epic contributor 🐘
    Mike, congratulations! After 15 years service i'm sure it's been earned. :001_smile:

    Regards

    Dean

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