HomeSituationsWorkplacePartner exit at a professional firm
TN/SIT/11
Edition 2027 · effective 1 January 2027
Workplace · Partner exit at a professional firm
A partner is leaving. Clients, colleagues and capital are all in play.
Partnership exits test the partnership agreement and every relationship in the firm. An independent evaluator or mediator helps agree terms quickly and quietly, protecting clients and reputation.
§ 01What it looks like
Recognise it early. The earliest moment is the cheapest.
What you notice first
Small, and easy to explain away.
- Partner meetings split into camps
- Client relationships are being quietly moved
- Capital accounts and goodwill are disputed
- Restrictive covenants are threatened
What waiting can cost
Usually more than the original issue.
- Client trust
- Firm reputation and stability
- Capital and goodwill
§ 02The Neutral route
Usually: Mediation.
Mediation agrees the exit; expert determination settles any figure the agreement leaves open.
Mediation
The parties decide. The mediator never imposes.
Also used · Binding by contractExpert Determination
The expert decides the defined question.
§ 03The steps
What a good process looks like.
- Read the partnership agreement togetherBefore anything else01
- Agree a confidential mediationThe moment independence enters02
- Separate client transition from moneyWhere the work is done03
- Use expert determination for the numbersSo it holds04
§ 04Prepare and avoid
What to bring. What to leave out.
(Bring)
01
Partnership agreement
02
Capital and profit records
03
Client list and transition plan
04
Timeline
(Avoid)
✕
Public disputes in front of clients
✕
Litigation as leverage
§ 05Your version
Every situation is different. Describe yours.
§ 06Related