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.
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.
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.