Finance and Accountancy Briefing
Planning for the Future – Multi Partner Firms
Practice loan schemes 20 years ago proliferated around the profession. The principle one at the time being the NWS Unsecured Loan Scheme that enabled incoming partners to raise substantial funds in order to buy into practices. As the buyers were baby bombers, they were effectively greater in number than the retiring partners at the time.
That position is now being reversed and there will be more wishing to get out of business, than get into business. The problems faced by multi partner firms do vary. There are a whole raft of firms that are sub £1 million and consist largely of older partners. It is anticipated that in one form or another that they will disappear over the next few years. The chances are that they will be taken over by a local larger firm. In some cases partners have taken residual clients home and gradually reduced the commitment from business in this manner. In any event most of them have little or no succession built in with the youngsters coming through, and the end result has to be that they will disappear. It is only the way that they will disappear that needs to be taken into consideration.
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