Small Firm, $25m in billing with 10 equity partners. 3 of these partners are over 55 and own about 50% of the firm. Each of the three has been very open about not wanting to work past 60. We have not had a significant equity position retire in over 20 years (since the founder of the firm). The problem is determining the valuation and payout formula. Any suggestions, or formulas that are somewhat standard? The Partnership has not been updated in a long time and is silent on this.

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

Tried to DM you but system says you're not able to receive one.

This is so much more than typed fishbowl reply. I spent time at a firm of similar size and we had formulas which in my opinion were too rich for the older equity holders. The liability to remaining partners would have too much of a burden and a disincentive. We ultimately capped the value to these retiring partners. They didn't like it but agreed. Then we ultimately merged up before they retired and they received extra whixh turned out to be a mistake that once again burdened remaining partners.

I think younger/remaining partners have more power than they realize because without the remaining people, the value to retiring partners diminishes materially. It was a value lesson learned.

If you can try to DM me, happy to connect and share what I have seen and learned.

Good luck

like

Buying out 50 percent of the equity partners in close proximity would seem to create a significant financial burden for the remaining partners and likely diminish opportunities for future partners. Not to mention other concerns. You’re probably looking at about a 1x revenue multiple. With 10 partners thats 2.5m x 3 or a $7.5m buyout. Depending on free cash flow, it may be time to start looking for a buyer.

Related Posts

I have Cognizant offer 25 LPA & EY 29 LPA
YOE 9
Does cognizant match the counter offer?

Also while negotiate counter offer it requires share complete offer latter? Instead of screen sort of CTC break up

like

Interviewed yesterday but couldn’t get the salary range from the recruiter until I told her my current compensation. Does that frustrate anyone else? I hate that.

like

Hello all. My company just went through an acquisition and the company did some restructuring of job titles. When they did this we were all advised the company would be making sure our jobs pay aligned with the national average.
My issue with this is my job title went from a Technical Support Supervisor to a Customer Success Team Lead. I have voiced my concerns with management but have been advised job titles are semantics. In my eyes this is a demotion, and will affect how much my job is worth.

Due to politics in team against me, I was given C band for my performance and now I am ineligible for DCA 202. Any suggestions on how to increase salary within tcs or I will have to wait for next cycle?

likeuplifting

Besides salary, how to pick between job offers?

like

Hi Fishes,

Can anyone please tell me what is the salary range for Data analyst with 4 yoe
Tech stack sql, tableu, R/python

like

Can anyone guide me on what to expect in google cloud program manager role interview (in role related knowledge round). Also any informtaion on salary range for this role please ?

like

How is Novartis Management Consulting Domain? I have got an offer for 20.5L

YOE - 3.5yrs

like

I have cleared all the round of Amazon DE How much I should ask ? My YOE is 3 year and I am holding offers around 23 lpa (22 Base) Amazon

like
like

How much do mid-level sales people do in SaaS? (Base Salary and commission structure)

like

Larsen & Toubro Infotech Hi everyone,

I have 6 years experience in .net, my current package is 13.5, now am planning to move from current organization. how much can I expect from other organisations. Anyone have any idea?Virtusa Accenture CTS Tata Consultancy Infosys Mindtree Larsen & Toubro Infotech

like

Does NTT data pays variable pay that they mention in the offer letter as PEP(0-14%)?

What is a good salary for a non-tech client-facing director role at a Series B company?

like

Do partners know each other’s compensation? I see partners selling engagements for vastly different numbers b/w shorter ‘interesting’ strategy work and longer ‘boring’ transformations. Thoughts?

like

Anyone know salary range for Director of Customer Success @ Stackline?

likesmart

Got an offer of 8LPA from JPMC for the role of Test Analyst. YOE - 1.4 years, Location - Malad, Mumbai.
I would like to know how much I can negotiate with the HR on this offer.
I don't have any other offer in hand.

like

How much was your bonus this year?

like

Hi SFishes.

India.

I have 2 offers for
Salesforce tech, total yoe - 8yrs.
1. Deloitte usi - senior consultant
2. Salesforce - senior tech consultant.
Both are offering same package.

Which one should I prefer for long term association. Factors - WLB, WFH, Growth.

@salesforce Deloitte USI

like

More Posts

Thoughts on GP Bullhound?

Hallo 🐠 got a promotion and transfer opportunity to move to Amsterdam from the US (I’m in the industry). Looking for inputs on best neighborhoods to rent a place! I’m moving with my fiancé and we are in our late 20s

like

Any thoughts on Metyis as a strategy consultancy? They were previously known as YGroup and have recently rebranded.
Would love to hear from anyone that knows them or has worked for them in the past.

Been here ~5 years now and looking for a way to get dual citizenship (since spouse is not Dutch). Anyone know of any common paths or loopholes to not have to renounce current citizenship?

Any good gated communities near Taramami office ?

Looking for a place to stay

like

Who is more annoying Cross Fitters or vegans?

like

hi ,

any one joining accenture on may 16th? please let me know

like

Accenture is 11% hike decent for level 9 ?

like

Am looking at exit opportunities and researching FAANG. Curious to understand why anyone would join Amazon which has the worst benefit of the FAANG? Can anyone share what’s better at Amazon that I am not aware of? Amazon and Facebook on sites lined up in January! So researching now!;)

like

Where does Accenture Interactive's salary band start with 2 YOE?

What is the fiscal year at Deloitte? Also can someone share rough performance year timelines - goal setting, mid-year assessments, final assessments, year end conversation, et al.

like
like

Within Salesforce, @Quip, Slack, Tableau Software how often are there leadership changes at the VP or above level? Is this an annual thing? X years after acquisition?

likesmart
like

Question: Are employers legally allowed to deduct pay from your paycheck without your knowledge or approval?

likehelpful

Like this for good karma (Gives me the opportunity to DM people)

like

What does your opposing counsel do that pushes you over the top and just makes you want to settle the case? (Plaintiff and defense answers welcome). Mine: requesting 15 depositions of people that will never be called at trial.

like

The new company I’m at now sent me an email from an email address that was HR@companyName.careers saying I was accepted for the position. They gave me paperwork to fill out and sign to accept the position

I fill out the paperwork and send it back to them and it goes through… then a few days later I go back to the email to say something else and I get this…?
Then today I got a check from the company In the mail to setup my home office, and it’s signed by someone I’ve never met before or heard of…?

What…..

Post Photo
like

Hi Fishes, I immediately need to switch my role related to Data science/ML/AI with good hike. Suggest some companies and ways. I'm willing to learn new things after deployment.

YOE : 1.5 years as Python developer

Skills : C, Python, Excel in writing SQL queries, Swagger, Microservices, PostgreSql Aws(Lambda, Api gateway, SNS, SQS), Angularjs, PHP.

I’ve received an offer letter for Sr customer service associate at cognizant..I have not joined on the date given but..the offer letter is still valid for next 2 months ..can I join now?

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