Law Firms – Unprecedented Changes Here To Stay

Unprecedented Changes in the
Collection Market Are Here to Stay

Every attorney is familiar with the seismic changes that have occurred in the legal collections market in the recent past.

  • Declining placements.
  • Increased compliance demands
  • A growing client preference for multi-state firms
  • Shrinking margins
  • Hostility from courts and regulators
  • Aggressive, predatory consumer attorneys
  • Downward fee pressure

Many attorneys who have been through many market cycles believed this harsher environment would blow over. Unlike previous cycles, however, many of these changes appear to be systemic and permanent.

The Changes in the Collection Marketplace Place
Smaller Firms at a Competitive Disadvantage

Although these changes have impacted firms large and small (see the Hanna case), they have been especially difficult for smaller firms.

Many creditors are reducing the size of their networks because of their own compliance and management pressures. It is easier for them to manage one firm in five states than it is to manage five firms in five states.

This simple but ruthless numbers game leaves many excellent smaller firms excluded from business by clients they have served well for many years.

Eltman Law works with small firms on creative succession plans that benefit all parties. Call 212-660-3164 for more info.

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Law Firms – Exit Strategies For Market Pressure

Common Exit Strategies for Collection Firms Pressured by the Market Shift

Unprecedented changes have hit the collections market, and it has to become clear that these changes are here to stay. Many smaller law firms feel increased regulation and declining placements have put them at a competitive disadvantage, and are making the decision to exit the marketplace in the most rational way possible.

Once the decision has been made to depart the firm’s practice for retirement or other pursuits there are several different methods to be considered.

Immediate Departure

This approach anticipates the departure of the existing partners after a brief transition period following a sale. The buyer and seller work together to ensure that all ethical and client requirements are met, but the selling attorneys have no further involvement with the firm after that.

Succession Plan

Smaller firms often have difficulty in succession planning for a variety of reasons, including a lack of qualified attorneys for leadership positions. This issue can be solved by developing a succession plan in cooperation with a larger firm. The partners in the smaller firm can join the larger firm with the intention of staying for a limited number of years.

The terms of their succession plan can be worked out so that the departing partners economic interests are protected while ensuring that the practice they built will last.
Please reach out to us if you’re considering an exit.

For more information:
Call 212.660.3164 or e-mail: BrBoyle@eltmanlaw.com

Eltman Law (www.eltmanlaw.com) is the industry leader in unpaid judgment management. Our innovative process uses deep data mining, nationwide asset investigations, and nationwide legal executions, to liquidate on accounts that other firms could not find value in.

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Law Firms – How Small Firms Cope With A Changing Market

Succession Plans Help Small Law Firms Cope With a Rapidly Changing Collections Market

Concentrate on Law

An affiliation with a large firm can relieve the partners of a small firm of the parts of a law practice that many lawyers hate: payroll, IT, accounting, compliance, and client services. This allows them to act like lawyers again.

Move into Business Development

Many smaller firms have great contacts and reputations in the industry but have hit a glass ceiling in business development because they are limited to one state. An affiliation with a larger firm can provide the opportunity to expand your current good relations into a national arena.

Improve Your Competitiveness

Joining a large firm can make your firm more attractive:

  • Asset location resources that greatly improve your judgment liquidations, which in turn lead to increased market share.
  • A larger footprint that increases your attractiveness to existing national clients.

A decision to join a firm after years of your running your own shop should obviously not be taken lightly, but a wise national firm will allow a seasoned, reputable local attorney to have considerable latitude within its brand.

Eltman Law is looking to help collection firms with their exit strategies through creative succession plans that benefit all parties. Please reach out to us if you’re considering an exit.

For more information:
Call 212.660.3164 or e-mail: BrBoyle@eltmanlaw.com

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