Law Firm Succession/Exit Planning – Sole Owner Practice

Question:

I am the owner of an estate planning practice in northwest suburbs of Chicago. I have two associates and for staff members. I am sixty seven and would like to retire when I am 70 (3 years). I have no idea as to where I should start and the approach I should take. I would appreciate suggestions.

Response:

Sole owner firms and solo practitioners face a real challenge when deciding what to do with their practices. While many of the issues are similar to those faced by multi owner firms, sole owners and solo practitioners must also face the following additional challenges:

Identifying another attorney in the firm to move into a partnership position
Locating colleagues to sell the practice
Locating merger candidates
Effecting the sale or merger of the practice
Proper wind-down of the practice if the practitioner decides to simply “close the doors” (employees, client files, etc.)

As with multi owner firms the key is to start early and not wait until the last minute. I suggest that you put in place your succession/exit plan as soon as possible – not just for retirement but for unexpected situations as well – so that your family, employees and clients are not left in the dark if something should happen to you.

Just because you have associates – don't assume they want to be owners and own a law firms. Look into this early as it may impact your hiring strategy as well as your overall strategy and whether it will be an internal vs. external succession strategy.

Click here for our blog on succession

Click here for out articles on various management topics

John W. Olmstead, MBA, Ph.D, CMC

Posted at 08:49 AM in Succession/Exit Strategies
Tags: Exit, Firm, Law, Owner, Planning, Practice, Sole, Succession

Sep 15, 2015

Law Firm Succession/Exit Planning – Sole Owner Practice

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