Not having a plan for the future of the firm is regulatory risk, as a 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.
Our Succession & Exit Plan Services
At The Strategic Partner, we work with firms to develop succession and exit plans that achieve the goals of the current partners.
Our work will also extend to the training and mentoring of future partners and provide them with the confidence and skillsets required to become equity partners and decision-makers. For more details on our future partner training and mentoring programme, click here to view our service.
With the legal market struggling to find Solicitors willing to step up to equity status this is an important area for firms to address and consider to sustain their own future. A successful succession and exit strategy will include:
- Identifying the plans of the current partners and when they intend to retire or reduce their activity
- Address what would happen in the event of a sudden and unexpected exit
- Provide future partners with a path to equity and clearly set out the firm’s expectations and requirements for future partners
- Considering finance options if there is a need to ‘buy into’ the equity
- A plan to address the financial consideration of an exiting partner and if and how they will release their own capital
- Identification of future partners and ensuring they are trained and ready for partnership status and the responsibilities that it brings
- Updating the partnership of Shareholders agreement to protect both existing and new partners
- Consider and address the impact on the firm, its clients, and staff of an exiting partner and in particular, address client relationships or skills that could be lost as a result of a partner leaving.
For more information about our Succession & Exit Plans service, you can call us on 0203 911 9710 or you can email us at firstname.lastname@example.org.
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