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Even under the best circumstances, the odds of merger discussions between two law firms actually resulting in a combined firm are relatively low. There are numerous cultural, logistical, and business case issues that naturally prevent two firms from unifying. In addition, for the large majority of small and mid-size firms in this country, pursuing and evaluating a merger represents new and uncharted territory. Consequently, these firms tend to approach the merger process without the tools and information required to succeed. What are some of the issues and challenges that inhibit many firms from achieving a successful merger? Below we offer several real-life scenarios that often prevent stable and profitable law firms from successfully finding a merger partner.
Unfunded Retirement Plans
Sample Scenario: T&Y is a well-respected 300-lawyer firm that operated a large, unfunded retirement plan (estimated liability totaled $20 million (NPV)).
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