According to an April 5, 2021, Bloomberg Wealth article, "more than 3.1 million Americans age 55 or older plan to apply for Social Security benefits" earlier than planned due to Covid-19. Furthermore, approximately 1.7 million Americans will file for early retirement, clearing younger Americans' way to fill those positions. How does this affect law firms?
Now more than ever, law firms are having to address succession planning to prepare for the growing amount of retirees, including "shifting resources and focusing on business continuity plans, including recruitment, retention, crisis response, and succession planning." According to Law.com, this process can take years as "careful consideration needs to be taken to address strategic priorities, management needs, and client relationships."
Peter Johnson of Law Practice Consultants has stated the following:
"There's a link between the client and the responsible attorney, and it's important the attorney effectively transitions the client to the next generation, so the clients stay on. After all, it's all about the relationships because there are a million attorneys who can do the job."
The relationships between law firms and their clients are crucial to the success of both parties. After a year of uncertainty, it is more important than ever to have a solid base of trust so that your clients know you are there for them when they need you the most. Shari L. Kelvens and Alanna Clair of Law.com said in another recent article, "it can give clients peace of mind to know that their preferred lawyers have an adequate support network available to provide ongoing services."
How do law firms plan for succession? John Olmstead of Olmstead & Associates has provided four (4) phases of succession preparation:
Phase 1 – Objective/Internal Review
Phase 2 – Valuation/Analysis
Phase 3 – Strategies & Plans
Phase 4 – Implementation
Click here to learn more about each step.
Advocate Capital, Inc. is honored to work with great firms who value their clients and provide the best service possible in all aspects.
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