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As law firms and many other professional service firms including CPAs emerge from the turbulent economic environment of the past few years, they find themselves with an ownership group that continues to age and mounting concerns on how the enterprise will find the continuity to survive and prosper into the future. Succession planning in many law firms has given way to what is now referred to as exit planning, whereby practitioners are concerned more with how they can make an acceptable exit from the productive practice of law, as opposed to building and executing a blueprint for an efficient succession of ownership and leadership.
While some practitioners have essentially decided to effectively continue working until they make a reasonable exit and then “turn out the lights,” others I work with are actively looking at ways to build a viable brand within those they have embraced as tomorrow's leaders as a means to enhance the continuity of the practice. There are many financial implications of moving in this direction, and this article explores the lessons learned from an initiative we have undertaken to enhance our professional service firm's ability to build a logical and acceptable pathway, both for those we refer to as the First in Line (“FIL”) individuals and those we view as the New Generation (“New Gens”).
Background
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