As this year draws to a close, some of our readers may be considering a potential move. The beginning of a new year often brings change, and many in our profession view the first quarter of the year as an optimal time for making a lateral move. Below, I respond to a couple of questions to assist anyone who may be in the process of considering their options.

Question: I’m interested in a lateral move, but I don’t want my current firm to find out. How can I conduct a discreet job search without jeopardizing my current position?

First and foremost, be discreet. Don’t discuss the fact that you are looking for a new position with colleagues or clients. The former can lead to the information being leaked and management at your current firm learning of your job search. The latter is risky because, depending upon the circumstances and what is said, it could be interpreted as a breach of your fiduciary duty to your current firm. In other words, don’t discuss your job search with others. Keep it confidential.

Second, select a reputable recruiter to assist with your search. Once you have selected a recruiter, let the recruiter know that you need to approve any firms that your information is sent to beforehand. Once you have had several interviews and narrowed your search to a couple of firms, each firm may ask you to provide personal references. To the extent that you can, wait until the end of the process to provide those references. When the references are provided to the firms, tell each firm that they are not permitted to reach out to those individuals without your prior authorization.

Lastly, use good common sense. Calls and meetings should be conducted in a private manner and in a private location. In other words, don’t speak to your recruiter or any firm you are interviewing with in your office. Don’t prepare your resume or respond to a firm’s lateral partner questionnaire on your firm’s computer. This may sound obvious, but many individuals don’t pay attention to these details, and that is how information gets leaked.

Question: How typical is it to have to “buy-in” to the equity partnership these days and how does that work?

An equity partner is an owner of the firm and must pay money into the firm to purchase units, points, or a percentage ownership share of the firm. This is known as the “buy-in” or “capital contribution.” The requirement that an equity partner must “buy-in” is still prevalent in our profession, but that’s where the similarity ends. Each firm’s “buy-in” is different. Some firms require a certain percentage of the equity partner’s compensation as their capital contribution. Other firms require a fixed amount to be paid in by all partners regardless of the partner’s compensation. Some firms require immediate payment of the capital contribution, upon joining, while others will allow for installment payments over time. Some firms’ capital contribution is tied to a partner’s compensation. If the partner’s compensation increases year over year, so does the amount of the capital that must be contributed by the partner. Likewise, if the partner’s compensation decreases, any excess capital will be returned to the partner. Many firms also work with preferred lenders who will finance the capital contribution for the firm’s partners through low-interest loans.

If you are being asked to join a firm as an equity partner, it is critical that you inquire about the firm’s capital contribution policy and understand its terms prior to joining the firm. Usually, only equity partners are required to make capital contributions to the firm. More recently, however, some firms have begun requiring non-equity partners to make capital contributions—albeit in smaller amounts than the contributions required from their equity partner ranks.

The takeaway here is simple: Any partner who is considering a potential move should ask about the firm’s buy-in and if he or she will be expected to make such a contribution.