Designing a Succession Plan for Your Law Practice

TABLE OF CONTENTS

Introduction: Congratulations, you did it! 5

How to Use This Book 9

Chapter 1. Take the Succession Readiness Test 15

Case Study: Jones and Associates - How not to do it! 15

Get Ready, It's Time for Your First Step 20

What's Next? 21

Chapter 2. What Are Your Wants and Needs? 23

Case Study: Smith and Associates - Determining Wants and Needs 24

Creating Your End-Goal 25

Identify Your Personal Needs 28

Identify Your Financial Needs 30

Conversation Starter: Conversation With a Spouse about Finances 34

Chapter 3. Get Your House in Order 37

Case Study: Smith and Associates - Preparing For Transition 37

10 Ways to Make Your Practice More Marketable 39

Preparing Your Team 47

Chapter Takeaways 50

Conversation Starter: Conversation with a Law Partner About Retirement 51

Chapter 4. Consider Your Transition and Exit Options 53

Case Study: Smith and Associates - Considering the Options 53

Retirement Advisory Team 54

Know Your Ownership Transfer Options 55

Disaster and Contingency Planning 56

An Estate Plan for You 57

Conversation Starter: Conversation with an Associate 

about Firm Ownership 64

Financial Wellness Checklist 67

Chapter 5. Know the Value of Your Practice 69

Case Study: Smith and Associates - Law Practice Valuation 69

Valuing Your Practice: What's Your Magic Number? 71

Rule of Thumb Value 72

Market Comparison 72

Key Value Drivers 73

Adjustments 73

Key Documents for Valuation 75

Conversation Starter: Conversation with a Reluctant Partner 79

Chapter 6. How to Sell or Transfer Your Law Practice 81

Case Study: Smith and Associates - Transferring Ownership of the Firm 81

How to Break the Big News: A Checklist 83

Summary of Steps for Selling Your Practice 90

Why You Should Consult a Law Practice Broker 94

Conversation Starter: Announcing Your Retirement to the Law Firm 97

Chapter 7. Ten Insider Tips for a Successful Transition 101

Case Study: Smith and Associates - Working Through the Details 101

Ten Insider Tips for your Law Practice Succession Plan 103

Chapter Takeaways 107

Case Study: What Went Wrong 108

Chapter 8. Life After Law 111

Case Study: Smith and Associates - Ready for Life After Law 112

The Four Main Fears of Succession Planning 113

Nine Strategies to Overcome Your Fears 114

Chapter Takeaways 116

Case Study: Are We Emotionally Ready for Retirement? 117

What Does Life after Law Look Like? A Few More Thoughts 119

Appendix* 123

Discovery

Firm Financials Profile 124

Firm Background and Operations Profile 129

Due Diligence

Financials List 134

Lender Items 138

Firm Data 141

About the Authors 145

Tom Lenfestey 145

Camille Stell 147

Jay Reeves, Editor 149