I am one of three founding partners in a twelve attorney insurance defense firm in New Orleans. The three of us are in our early sixties and contemplating retirement in the next several years. The three of us have been discussing our succession plans and are wondering whether we would be better off merging with another firm or transitioning the firm to our associates. What are your thoughts on this matter?
A majority of firms prefer transitioning to the next generation of attorneys within the firm whenever possible. Many founding partners at this stage of their career are often not ready to move to another firm unless they have to.
Advantages of transitioning to associates in the firm include:
Disadvantages of transitioning to associates in the firm include:
I believe that you should start by taking a critical look at the demographics of your associates and raise the following questions:
Your answers to the above five questions will determine whether you should consider a merger strategy. It is often difficult to get a “founders benefit” (goodwill value) in mergers with other firms.
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 08:19 AM in Mergers, Succession/Exit Strategies, Uncategorized
Tags: Associates, Firm, Merger, Our, to, Transitioning, vs