If you have lawyers working for you and you’re ready to retire, the first succession plan option to consider is an associate buyout. Here’s what you need to know about this popular choice.
Being a successful law practice owner requires a skillset entirely different from that of a good working attorney. Before passing the baton to one of your associates, you must ask yourself the following:
Your answers to these questions will likely fall within one of the following categories:
If your answer is akin to, “Are you kidding me?!”, there is no need to think any more about an insider deal. Many insider deals are partially funded from the firm’s future profits to make it feasible for successors to pay the retiring lawyer. There will be no future profits for funding if the successor mismanages the firm. That means it’s time for Plan B: find a third-party successor.
If your answer is more along the lines of, “I think there’s a good chance,” what makes you so confident that the lawyer has the “right stuff”? Have you objectively evaluated the situation and your associate? If you find that, once blind spots are uncovered, things don’t look so good, consider finding a third-party buyer.
If you work with Roy Ginsburg to gain that objective evaluation and Roy confirms your judgment, he’ll then provide you with the parameters of how to price and structure the buyout for a successful transition.
Roy Ginsburg is an experienced law firm succession coach as well as a seasoned attorney in his own right. With more than three decades in the legal field in his tool belt, he’ll be sure to provide you with the insights you need to make the right choice as to how to exit the legal profession profitably. Call Roy today at (612) 812-4500 or send Roy an email to learn more.