Most small and mid-sized law firms are so focused on serving clients and managing day-to-day demands that they rarely take the time to plan for what comes next. Some have identified a potential successor, but few have created a written plan to ensure a smooth transition when that day arrives.
It’s never easy to think about how an unforeseen event could impact your practice. Anticipating the future is challenging for most of us. I often ask my clients one simple question: When do you plan to leave?
Many attorneys get caught in a routine. As I often remind them, the definition of insanity is doing the same thing over and over again but expecting different results.
Rainmakers who have spent decades building their reputation often don’t think about retiring. Now in their sixties, many still have thriving practices, but no one is ready to take over. While sixty is considered middle age today, it’s also the right time to start preparing for transition.
Facing the Reality: What Happens When You Leave
When partners finally take a moment to think about the future, the choices can feel uncertain. Should you mentor a younger attorney and hope they stay? Should you merge with a larger firm that can provide the technology, marketing, and administrative support your clients expect? Or should you close the doors?
Don’t wait until life circumstances decide for you. Waiting for a crisis, illness, or sudden change can limit your choices and reduce the value of your firm.
Succession planning isn’t just an exit strategy. It’s a business continuity plan that safeguards your clients, protects your staff, and preserves the value of your practice.
Why Many Firms Avoid Succession Planning
Attorneys are trained to anticipate risk for others, but not for themselves. Many partners assume they’ll deal with succession later. Others fear that planning signals they’re ready to retire.
Here’s the truth behind the most common excuses I hear:
- I’m too young to think about it. Early planning gives you flexibility, not limitation.
- If I plan my exit, I’ll be replaced. The opposite is true. It shows foresight and leadership.
- I’ll lose control. A plan gives you more control over how your legacy continues.
- It feels too complicated. With the right advisors, the process becomes clear and manageable.
Step One: Know What Your Firm Is Worth
Before you decide how to move forward, you need to understand what your firm is worth. A professional valuation can identify your key assets, revenue streams, and intangible assets, including goodwill. It also reveals how transferable your client relationships and systems are.
Ask yourself:
- How dependent is the firm on a few rainmakers?
- What percentage of revenue comes from repeat clients?
- Would clients stay if a key partner were to leave?
Knowing the value of your firm gives you the clarity to make smart, strategic decisions—whether you plan to grow, merge, or transition internally.
Step Two: Develop Future Leaders
Succession planning isn’t a single event. It’s an ongoing process of identifying and developing leadership potential within your team. Look for associates or junior partners who have both legal skill and business acumen.
Invite them into client meetings, business development discussions, and management conversations. Teach them not just how to practice law, but how to lead a practice.
The goal isn’t to create a clone of yourself—it’s to build a leadership culture that will thrive long after you step back.
Step Three: Minimize Disruption
When a senior partner leaves, clients may feel uncertain, and employees may worry about their future. A written plan prevents that disruption. It should outline:
- Who assumes leadership responsibilities
- How client relationships will transition
- What communication plan will reassure clients and staff
- How will ownership and profit distribution continue
Transparency builds trust. It’s how you protect the relationships you’ve spent your career building.
Step Four: Strengthen Leadership Capacity
Encourage your team to think long term. Ask senior associates and partners about their career goals and leadership aspirations. This helps identify future leaders early and increases engagement across the firm.
Succession planning isn’t about stepping aside too soon. It’s about ensuring your firm can grow and adapt, even when you’re no longer the one driving it.
Step Five: Explore Your Options
If an internal successor isn’t available, consider other routes. Some firms merge with compatible partners to gain access to technology, marketing, and administrative resources. Others sell to a colleague or bring in an equity partner with a buyout arrangement.
Each option has financial and emotional implications. Planning early gives you the time and leverage to make informed decisions that benefit you, your team, and your clients.
Step Six: Seek Professional Guidance
You don’t have to navigate the process alone. Work with advisors who understand the business side of law. A legal consultant can address partnership agreements and ownership structures. A recruiter who specializes in law firms can help identify potential successors or merger partners that align with your culture and client base.
Succession planning isn’t about leaving. It’s about building long-term value and ensuring your work continues to thrive. When you prepare today, you create freedom for tomorrow.
Step Seven: Define Your Goals
Clarity begins with asking yourself the right questions:
- What do you want your legacy to be?
- How much financial freedom do you need for retirement or a new chapter?
- What kind of leader should carry your vision forward?
Once you define your goals, your advisors can help you build a strategy that supports them.
Step Eight: Prepare for the Unexpected
Even the best plans can be interrupted by illness, economic shifts, or unexpected change. Create flexibility within your plan. Identify an interim leader or advisory committee who can manage the firm if a sudden transition occurs.
Review your plan annually. Update it as your goals, market conditions, or team evolve. Treat it as a living document, not a one-time project.
The Payoff: A Firm That Outlasts You
Succession planning isn’t about retirement—it’s about sustainability. It ensures your clients are cared for, your staff is secure, and your firm continues to thrive. Most importantly, it gives you peace of mind knowing that what you’ve built will endure.
Take the First Step
Change is inevitable. You can either prepare for it or let it happen to you. Start now by speaking with a legal advisor or recruiter who understands law firm dynamics. Develop a plan that safeguards your future and fortifies your firm’s foundation.
Call 516-731-3400 to schedule a confidential consultation with On Balance Search Consultants. Let’s design a transition strategy that preserves your success and sets the next generation up to thrive.
This article is for educational purposes only and does not constitute legal advice. Please review the laws and regulations in your jurisdiction.
