As a Law Firm experiences growth in both clientele and influence, they may have the opportunity to be purchased by a larger firm. Larger law firms, in an effort to expand their influence and client base, often purchase existing law firms in a desirable area, rather than open up an entirely new office. As complicated as these agreements can be, smaller law firms can be prepared for this unforeseeable possibility. To protect the interests of a growing law firm, a buy-sale agreement is critical. A buy/sale agreement is a legally binding agreement between the managing partners of a law firm that dictates the terms and conditions should the managing partners choose to sell the firm. For a buy/sell agreement to be successful and efficient, the arrangement requires a profusion of prior planning. Absolutely crucial in the event of a law firm buyout, is an established system of notification to existing clients to ensure attorneys maintain their ethical obligations. This is where Clarior Law can be a critical asset by creating a buy-sell agreement that is both legally sound and focused on long-term strategy. As an attorney specifies what events can trigger a buyout and what price will be paid for the buyout, the law firm is free to grow knowing that a set course of action is prepared for whatever circumstances the future may bring.
Michael Steck - JD Business, Non-Profit and Estate lawyer