As part of their succession plans law firms may look to combine with another firm.

There could be many valid reasons for this—perhaps the firm is aging out or cannot compete in the war for talent at its current size, or it is losing clients due to a lack of a national or global reach. Seeking a combination with another firm is not a matter of “giving up” or “giving in.” It is strategically mapping out a future path of success: a succession plan.

So, for the moment, assume the role of the leader of such a firm. Asking your partners “what are you looking for in a firm to combine with” would elicit a wide range of answers. But there would likely be one constant in the responses: “I want them to be like us.”

As such, I suggest to you that the real questions to be answered are:

• Who are you as a law firm?
• What is your culture?
• What makes your firm tick?
• What are your greatest challenges?
• What are your needs?
• What are your strengths? Maybe it is your lawyers, your history, the clients you serve, or the local significance of your firm to your community.

An answer that your firm is “different” is not helpful.

Unless you know the needs of your clients and your firm’s strengths as well as the firm’s shortcomings and missed opportunities that can be remedied in a combination, you will not know what you need in a potential combination partner.

Know thyself first.

Now onto the next step...

Once you have carefully performed a thoughtful search and identified potential “suitors,” there are several key areas to share within your firm about each of the potentials:

• Firm culture, as each firm defines it
• Current compensation systems (my apologies listing this as #2, but it is that important to a successful combination)
• Current leadership and its vision
• Financial obstacles, if any, such as unfunded liabilities, bank debt, pending lawsuits, onerous lease obligations
• Recent defections of partners and possibly clients, and why
• Opportunities for the “incoming firm” to assume leadership roles

Above all else, be open and honest. If there is an issue that will “tank” the discussions, early detection is best.

If all the answers meet the desired expectations and requirements of both parties, schedule more meetings. As a word of caution, discussions that drag out never end well, and do not expect to “win” every deal point. A common middle ground is key, as the two firms will soon be one.

The combined firm will be the winner.

Contact

The Professional Services Practice at Aon values your feedback. If you would like to discuss any of the topics raised in this article, please contact George J Wolf, Jr.

George J Wolf, Jr
Managing Director
New York