Succession & Exit Plans for Law Firms
The development of a succession plan is an important element of law firm management and control. Too many firms face negative repercussions of failing to address the issues that arise from not having partners or future partners that have the desire and ability to take the firm forward. The result of not planning for the retirement and exit of existing partners can render firms closing or being acquired by other firms for little or no value.
Not having a plan for the future of the firm is a regulatory risk as failure to address this issue can cause damage to not only the firm itself but the staff and clients. Approaching the exit of partners and addressing retirement plans should be linked to the development and promotion of new Partners and potential equity Partners. A succession and exit plan will dovetail the exit plans of existing Partners with those of future Partners and through doing so deliver a robust succession plan that protects the firm and its value.