Retirement means something different to every attorney. For some, it’s grandchildren and golf. For others, it’s finally taking that skydiving trip that’s been sitting on a bucket list for a decade. For many, it’s a slower transition: keeping a hand in the practice while spending more time in a second home, easing out of a firm with multiple locations instead of walking away all at once. The picture looks different for everyone. What doesn’t change is this: the attorneys who get to choose their version of retirement are the ones who started planning for it years before they needed to.
The Planning Gap Nobody Wants to Talk About
Stephen Covey’s advice to “begin with the end in mind” applies to law practices as much as it does to personal goals. Most attorneys spend decades building a practice without spending a single afternoon thinking about how that practice will change hands. The client relationships get built. The reputation gets built. The revenue gets built. But the plan for what happens to all of it eventually rarely gets built at all.
The numbers back this up. A 2018 Thomson Reuters survey found that only 37 percent of law firms had a formal succession plan in place or were actively creating one, and 61 percent of firm leaders admitted they were concerned about their firms’ lack of preparedness for partner retirements and succession. In other words, most firms know this is a problem. Most still haven’t fixed it.
That gap catches up with people. A firm’s lease comes up for renewal and suddenly there are real questions about whether it’s worth signing another term. A senior partner realizes the practice has no obvious successor, because associates were trained to do the work but never brought in on the business side of it. Big Law is no exception here. Even at the largest firms, senior partners often struggle to hand off real authority and real client relationships to the next generation, and the associates who were counting on that handoff eventually stop waiting and go find it somewhere else.
The Cost of Waiting Too Long
None of this has to happen through a single bad decision. It happens gradually, through years of deferral, until an outside event forces the issue. A merger changes the calculus for senior partners overnight. An equity structure dissolves. A pension that everyone assumed was fully funded turns out to be more complicated than expected. Firms undergoing consolidation are not always kind to senior attorneys who haven’t already secured their position, and marginalization can happen faster than most people expect.
The attorneys who end up with the least control over their exit are usually the ones who treated succession planning as a someday problem. Life happens fast, and when it does, the options narrow considerably. In broad terms, an attorney without a plan is left choosing between staying at the desk indefinitely, closing the practice and walking away from what was built, or trying to monetize a book of business under pressure and without leverage. None of those are good options when they’re forced rather than chosen.
What a Real Transition Requires
A smooth transition of ownership does not happen by accident. It requires the same kind of strategic thinking that built the practice in the first place: an honest assessment of the client base, a realistic timeline, and a structure that protects the relationships an attorney has spent a career developing. Rushed decisions made under pressure tend to put those relationships at risk, and once trust with a client is compromised, it is difficult to rebuild.
This is where an intermediary becomes valuable. A recruiter who understands succession planning can open doors that would otherwise stay closed, connect an attorney with the right opposite number at the right firm, and negotiate terms that reflect the actual value of the practice being transitioned. This is not simply about finding a new firm. It is about finding the right structure for a life’s work to continue.
“A succession plan ensures that clients are taken care of and that no money is left on the table. You are able to exit under fair circumstances.” — Shari Davidson, President, On Balance Search Consultants
Succession Planning Looks Different for Solos and Small Firms
Big Law gets most of the attention in succession planning conversations, but solo practitioners and small firm partners often face a harder version of the problem. There’s no bench of associates waiting for a shot at ownership, no other equity partners to absorb a departing lawyer’s book of business, and often no internal infrastructure for a gradual handoff.
For a solo practitioner, succession planning frequently comes down to a narrower set of choices: bringing in a junior partner years in advance and training them into the role, arranging a sale or merger with another small firm, or establishing a formal referral and file transfer arrangement in case of an unexpected departure. Many state bars recommend that solo attorneys have some form of succession arrangement in place to protect client files and ongoing matters if something happens unexpectedly, making this an important part of responsible practice planning.
Small firm partners face a similar dynamic on a slightly larger scale. Without a deep partner bench, the loss of one senior rainmaker can destabilize the entire practice. That makes early planning even more important, not less, and it’s often where an outside advisor adds the most value, since small firm leadership rarely has the bandwidth to run a formal process internally while also running the practice day to day.
Why So Many Attorneys Stay in Denial
Most lawyers are not prepared for their own exit, and it is not because they lack the resources or the relationships to plan one. It is because succession still feels like a distant problem, something for later. That mindset is understandable. It is also the single biggest reason so many attorneys end up managing a forced transition instead of a chosen one.
The attorneys who fare best are not necessarily the ones who are ready to retire tomorrow. Many still enjoy the work and are not in a hurry to leave it. The difference is that they have made time to build a plan even while they are still practicing, so that when the moment does come, whether on their own timeline or someone else’s, they are not starting from zero.
Building a Plan That Protects What You’ve Built
Retirement planning for an attorney is not a single decision made at a single moment. It is a strategy built over time, with a clear destination in mind and deliberate steps taken to get there. A workable plan generally starts three to five years out, not three to five months out, and includes a realistic valuation of the practice, a clear-eyed look at which relationships are portable and which are tied to the firm itself, and a timeline that gives clients and colleagues time to adjust rather than being blindsided.
That strategy should protect client relationships, secure long term financial outcomes, and give an attorney real choices instead of leaving those choices to circumstance. The earlier that planning starts, the more options remain on the table. Waiting until a lease renewal or a merger forces the question is waiting too long.
Frequently Asked Questions About Attorney Succession Planning
When should an attorney start succession planning?
Most advisors recommend starting three to five years before an anticipated transition, and earlier for solo and small firm attorneys who don’t have an internal bench to draw from. Starting early preserves options that disappear once a transition becomes urgent or forced.
What happens to a book of business if there’s no succession plan?
Without a plan, a book of business is far more likely to be transferred under pressure, split up informally, or lost altogether if a departure is sudden or unexpected. A formal plan is what allows that value to be captured and transferred deliberately instead of by default.
Can a solo practitioner have a succession plan?
Yes. Many state bars recommend succession planning for solo attorneys to help protect client files and pending matters in the event of an unexpected absence or departure. Common approaches include training a junior partner into the role over several years, arranging a merger or sale with another firm, or setting up a formal file transfer agreement with another attorney.
What’s the difference between succession planning and simply closing a practice?
Closing a practice is what happens by default when there is no plan. Succession planning is a deliberate strategy to transition clients, revenue, and reputation to the right next steward, whether that’s an internal successor, a merger partner, or a new platform altogether, while protecting the value that’s been built.
Sources
Thomson Reuters Legal, “Thinking about a succession plan for your law firm?”
https://legal.thomsonreuters.com/blog/thinking-about-a-succession-plan-for-your-law-firm
If you are ready to think strategically about where your practice or career is headed, On Balance Search Consultants can help.
For a deeper look at the decisions that shape an attorney’s career, request a complimentary copy of The Arc of an Attorney’s Career. DM CLARITY on LinkedIn or email Shari@OnBalanceSearch.com.
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About On Balance Search Consultants
On Balance Search Consultants provides market intelligence and strategic advisory services to law firms and experienced attorneys. Shari Davidson, President, advises on lateral partner transitions, law firm growth, leadership succession, and attorney career strategy. Working with both firms and attorneys, On Balance helps align long-term objectives with the right platform, leadership structure, and growth strategy.
Contact: OnBalanceSearch.com | 516-731-3400
Disclaimer: This content is provided for informational and educational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel regarding their specific circumstances and applicable legal requirements.
