how to transition clients from retiring partners
don’t make this common but potentially expensive error.
by marc rosenberg
retirements & buyouts
i have done extensive polling of firms in recent years on client transition and offer here some of their practices.
the best transition practice of course falls under the category of “the best way to solve a problem is to never let it happen to begin with.”
more on retirement: retirement plan funding? what funding? | vesting can cover part-timers, too | compromise is in order for some goodwill payouts | when retiring partners take a specialty with them | why you’ll get less from your partners in a buyout than you might by selling the whole firm | eat what you kill? then maybe ‘book of business’ is for you | 5 points to consider when paying out goodwill | clients leaving? time to reduce retirement benefits | 4 ways to decide how to pay out capital | partners may balk at guaranteeing retirement obligations
said one mp: “the ‘transition’ process should start as soon as the firm gets a client (some start even sooner – on the sale pitch). clients should be assigned a team, including a backup partner and a manager. the client should be told who the team members will be. some call this institutionalizing the clients. if you do this, there is very little else that needs to be done when a partner announces his/her retirement.”
some other points: read more →
