Succession Planning for Law Firms

With an estimated 65% of equity partners approaching retirement age over the next decade, most attorneys at the firm will be affected by the transition-planning challenge. While this statistic is notable, most law firms pay little attention to partners’ retirement plans.  

Transitioning a firm is possible, but it is typically difficult. Advance planning and process development can significantly improve a firm's ability to transition. Forward-thinking firms recognize the complexity of successfully passing leadership and clients from one generation to the next. Avoiding retirement discussions only leads to an increasingly anxious workforce and creates an opening for competitors.

In our eBook linked below, we provide 10 key steps and helpful advice for developing an effective transition plan for your law firm.   

Examples of this advice include a few examples of listed below:  

• Prepare work-life timelines for all attorneys within 10 years of retirement age.
• Use objective methods when evaluating buyout pay decisions.
• Use a process for valuing the firm.
• Continuously build the firm's going concern value.

Download "10 Key Steps to Law Firm Transition Planning"

Lawyers and Firm Administrators Are Busy Enough
The sustained focus required for a firm to successfully plan a transition is often difficult for administrators and lawyers to maintain while managing daily business demands and pressing client service issues. PerformLaw can help your firm to assess the relevant risk factors and create a buyout structure. In removing the economic disincentives for senior partner retirements, your firm can increase the chances of a successful transition.

When carefully structured and given sufficient time, transition planning enables your firm to retain its strongest attorneys and attract high-caliber laterals. Clients also benefit from a proactive transition strategy. They gain more confidence in the firm, viewing its services as a stable, long-term solution for their legal needs.

If you are concerned about your next generation ofleadership or want to ensure a solid future for your law firm, we can help. With your firm, PerformLaw can assess the relevant risk factors and create a buyout structure. By removing the economic disincentives to senior partner retirements, your firm can increase the chances of a successful transition.