Been watching suits lately and I’ve gotten to the point in season 6 where they use the buy in fund to finance a settlement, and overall I’m confused as to the idea of what a buy in is. They also mention concealing it from the partners who have left the firm, because if they found out the ex-partners would come gunning for their money. So, what is a buy in, and how does it work if you leave a firm after you’ve paid the buy in? Are you entitled to the money, or does it stay with the firm?
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A law firm operates as a partnership, which is a type of business set-up. When lawyers get to a certain level, they may be offered partnership. This allows them to buy a percentage of the business (lawfirm) and reap a percentage of its profits on top of their salary. The buy-in might be more than they can afford to just pay, so they finance it through the firm. And lawyers who leave the firm or retire typically want/need to get bought out of their parnership so the firm needs to have liquid funds with which to pay out.
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