Typically people at the big four are promoted into the partnership. They do not pay anything to join the partnership pool. Instead of getting bonuses, they get a portion of the future income and losses of the partnership, pursuant to the partnership agreement they enter into. Your situation is different. Your boss is asking you to buy into the partnership. Think of the same thing as your boss going out and selling part of the venture to an outsider. Instead of going that route, he is asking you as a staffer to buy a piece of the partnership. This is not completely unusual in small partnerships. This is a business decision for you (not just a career decision). Is this business worth the valuation he is giving you? Have you reviewed the partnership agreement? How is he valuing his business (valuation as a multiple of revenue, EBITDA, etc.)? Have you run the numbers and map out the projection? this is a real project and a serious business decision, and to your question, it is not the same thing as the typical promotion process in the big four.
not the same thing at the big four
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• Thanks so much for your input. I oversimplified the offer. -CPA- ♀ (0 bytes) () 11/08/2009 postreply 04:25:35