Three practical rules for setting a buy-in price

Determining the right buy-in price is an inexact science. But applying one consultant’s “acid test” can help you come up with the right price given your individual circumstances. This includes:

1. Net compensation should be higher during the first year of the buy-in than during the partner' last year as an employee

2. The new partner should recoup his or her investment within five years

3. The buy-in price should be less than the cost of starting or buying your own practice

This nugget was adapted from 101 Practical Tips to Enhance Your Practice, from Advisory Publications, a division of HCPro, Inc. To order click here or call our Customer Service Department at 800/650-6787 for more information.

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About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read More >

Reed Tinsley, CPA