Before becoming an equity partner, what questions do you need to ask the firm from a financial standpoint?

like
Posting as :
works at
You are currently posting as works at

You should also ask yourself some financial questions too.

Am I willing to sacrifice my own paycheck so that my staff can get paid? How should we treat partners who do not pull their weight? Am I willing to be “partners” in the truest sense of the word? Am I willing to float my partner when they get cancer or their spouse gets sick or their child dies? How much do I have in savings? Am I generating enough to keep me and others busy consistently, and what is the track record for that?

likesmart

And from the opposite side, what’s the spread among the partners and can I live with my comp being cut in tough times so that certain rainmakers are kept happy

like

I’d want to know about buy in (the amount, how financed, when returned, any penalties for leaving), firm debts (long and short term), how the firm covers the time between partner distributions and money coming in, any deals with partners and how many, etc.

like

Buy in, percentage, timing of draws, whose responsible for benefits (I.e., do you foot your own or does the firm cover it as a guaranteed payment), three years of financials to see what your comp will look like and general health of firm, and cash reserves.

like

If you’re an associate now (not a non-equity partner) I’d also ask about how taxes are handled and whether the partnership has negotiated a health insurance rate with any insurance providers. From what I understand paying your own insurance is a hefty chunk of change once you become partner.

like

This thread is very informative.

like

Ask to see an example cash flow statement for a full year. Ask if budget has been met or exceeded in the past five years. If the firm has incurred debt, is it recourse to the partners?

like

Following. This is very interesting!

There are attorneys who you can consult for succession planning and things like that and you may want to consult one for this.

Partnership in a firm is like marriage. It can be difficult and messy to unwind. So, look at what the partnership agreement says about situations involving incapacity, forced retirement, buy-outs, etc.

What happens if you or another partner dies? Is there money in reserves (such as a whole life insurance policy owned by the firm) that will pay out at death to help buy the partner’s estate out of the firm?

The comments here are right on. What is the financial buy in, what is your percentage interest, are there any guarantee compensation to certain partners, what are the retirement benefits, do partners have to pay income taxes on phantom income.

How much are buy-ins typically? Is the pull out penalty a real thing? How much? What other restrictions are part of this bag? How do comp distributions work? Like is it guaranteed base salary plus draw like a commission sales person?

This is all so complicated. Is it even worth it? (Half joking)

It really does depend on the situation. There are def firms out there where the risk coupled with the potential upside doesn’t outweigh the predictability and consistency of a Senior Associate / non-equity partner / counsel salary.

like

Related Posts

Anyone have Rangers season tickets and not going to any playoff games??
Desperate fan here trying his best not to spend $500 😃😃

like

Hi I Have offer from BNP and Capgemini Pay is almost similar, Which one will be wise decision to join.

like
like

Here’s to hoping the start of the new Serena Lincoln navigator ad is the end of the Mathew mcconaughey Lincoln Navigator ads

likefunny

EY interview Experience

like

Honestly, do clients value what we do anymore?

like

What are your thoughts on leaving a stable but unfulfilling job for another one during these times?

like

Looking for a PwC senior associate referral in Advisory, anyone want to help me out. I have about 3.5 YOE, a PMP, an engineering degree from a top 10 engineering program, and feel like I’m a good fit for the position.

like

Sabse bada rupaiya

Post Photo
likefunny

DM or reply if interested

Post Photo
like

Hello everyone. Vinit Desai 📍London.
I have just graduated with a masters degree in finance from Warwick business school with over 3 of years of asset management and financial consulting experience.

I actively looking for financial roles ranging from IB, private equity, mergers and acquisitions. I'd be delighted if anyone would pass on a referral for a role they see open that aligns with my profile.

Here is a picture of my nephew who is the apple of my eye (the likes could help)

Post Photo
likeuplifting

Posting on behalf of my friend :
Counter offer made and manager communicated through email .
How long will it take for the incumbent to receive revised compensation offer ? No grade change was discussed will that be decided by HR or not required

For those who have been in recruiting and have pivoted into a different career path, what did you transition into doing instead?

like

What percentage of a full production budget should go to the producer rate? Ie 5,10,15%?

like

Any idea about Background verification takes how many days after joining in ibm? After it gets done successfully, will we get mail?

like

Anyone ever considered contractor gig in Meta/Facebook or any other big players in tech? I'm full-time in a smaller company and it's pretty stable. Wondering if the move could be worthwhile. Mostly want to explore other areas. Other things to consider: planning for babies in the next 3-5 years; maternity leave in current position is basically what's legally required.

like

I’m a college student studying data science. I’m interning at Deloitte currently is to become a data science consultant for non-profits. I don’t know if this is a role that even exists, let alone how I would start down that path. Any tips or advice would be greatly appreciated!!

like

Anyone from Guidehouse want to refer me?

like

Hi fishes, I am looking for an opportunity in Siebel admin/ Siebel upgrade. Currently working as a Sr Analyst. Any leads would be helpful.
Yoe: 5 yrs

Additional Posts in Law

Anyone know when Ch. 7 BKs must close by? Is this changed by when there are adversary proceedings (alleged fraudulent transfers made to a bank for CC payments)? Asking for my friend who is unfortunately involved bc of his parents, who are the debtors (he isn’t a defendant or a debtor in this, but the payments were made to a CC in his name—a CC he didnt know was opened in his name).

Its in Texas, and the initial BK filing was made about 23 months ago. TIA!

like

How are 1st year litigation associates dealing with WFH? I’ve been having terrible anxiety/panic attacks, and pretty sure my billables wont exceed 110 for April. I’ve been super stressed about it and don’t know how to move on to May with the proper mindset to make up for as much time missed as possible. CA courts are still closed, and I’m worried I won’t be able to exceed (or even meet) my May goal after April.

like

What are your outlook organization tips?

Trying to organize my email in a way that makes stuff easy to find. I have folders but how do I make emails both sent and receive easily save to their respective folders (as opposed to dragging each one)

Or any other organization tips for better productivity Iike I just have things organized by matters. Any other categorical suggestions?

like

What do partners generally expect from third-year litigation associates (smaller firm) as far as legal, professional, and/or case management skills go?
I still feel like I can’t (or don’t know how to) manage or push cases forward and like I’m constantly behind on everything—is this normal?

like

Advice Request: Started my career litigating. Switched to niche transactions (so about half and half at this point). Halfway through a year long sabbatical and reevaluating what I want to do (left before jumping to Senior associate). I’d like to get into litigation again in a practice group I don’t have experience in. Any suggestions on how to do this? How to approach firms and partners etc? Past 2 firms on my resume are top 30.

like

Has anyone taken  ACAMS Certified Global Sanctions Specialist (CGSS)? Any comments/ reviews? How has it enhanced your employability? Why did you take the CGSS?

like

What is the most “do as I say, not as I do” thing you’ve been told or punished/reprimaded for as an associate?

like

Considering becoming a consultant lawyer. Any advice/tips from someone who made that move?

like

Anyone have any affordable case management software recommendations? I’m looking for something a bit non-traditional as I work for a small nonprofit. Ideally the software would involve document organization/access as well as like a running “log” for folks to post relevant events or work completed for the file.

like

I’ve always wondered how are lawyers chosen to be recognized in magazines or online publications as “Best Lawyers”/“Rising Stars”? I’ve always assumed it’s a circle jerk of some sorts for Big Firms nominating each other, but I have no idea.

like

How many billable hours per week is considered at capacity? I’m getting pushback on boundaries I’m setting about additional matters and marketing work from my firm when I’ve been billing 60-75 hours per week for the last 6 weeks, and I’m still behind on my work. I feel like it’s reasonable to not kill myself further to fit in more/turn things around faster at this point, but am I being unreasonable? I expect my workload to remain at this level through the end of the year at least.

like

I recently had a specialist partner send me a fairly nasty email after I (a transactional first year) was told to ask them to review something ASAP that had clearly been on my partner’s radar for over a week. Why am I taking the (honestly justified) blame for this? Surely it should be obvious that I’m just the messenger here.

like

Has anyone been admitted to Massachusetts by transfer of UBE score? I submitted my application in July and took and passed the state law exam today. How long after this were you admitted? Thanks!

like

Am 2 months in to a new job with billable hours and I am miserable. How do I seamlessly go back to my old firm? Is this move a career killer?

like

Any thoughts on Legility vs. Relativity in terms of eDiscovery software? Or is there another I’m not aware of?

likehelpful

Parental leave: do you have to be at a company or firm for a year before being eligible to take parental leave? Are there any companies/firms that don't have this requirement?

like

Best divorce lawyer in NYC?

like

Advice on managing up / enduring toxic deal teams? I’m at the point where my stomach drops any time I see something come in from certain people. Everything is behind, client is unhappy, I’m exhausted and simultaneously being micromanaged without guidance on big-picture/substantive issues. I keep trying to tell myself at least this is consulting and the project will be over... eventually...

like

Rising 2L here…Just found out yesterday that one of my top target law firms is not participating in OCIs (they don’t have offices in my state). Any advice on the best way to move forward with them? Still planning to apply, just want to know what I should be doing. Thanks!

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal