For those firms with multiple equity partners: (1) how did/do you structure buy-in for a new equity partner? (2) how did you value your business for the buy-in? (3) how are equity partners’ compensation packages structured?

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You are currently posting as works at

Book value payable on note over ten years. The last question is more complicated to answer

At our firm, the buy in/capital contribution requirement is a % of your target/budgeted income for the year. Bonus and additional equity payments don’t count toward that %. So your buy in/capital contribution changes over time (up or down) with your target income for the year.

No buy in
No buy out
It’s wonderful

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