Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. I am a sole practitioner in Peoria, Illinois. My firm is a general practice firm that services clients throughout central Illinois. I have four staff members. I am 58. While I have enjoyed having my own practice for the past 20 years, I am concerned – what if something were to happen to me today or tomorrow? What is my backup plan in the event of short-term illness, disability, death, and even vacations? How would the firm keep operating? Who would take care of the client’s needs? How would my staff be taken care of?
A. Sound practice continuation arrangements can solve this dilemma, preserve practice value, and help prevent a lawyer’s spouse or immediate heirs from facing a hasty sale or disposition of the practice in an emergency. A practice continuation arrangement can also give lawyer practitioners, staff, and families peace of mind.
A practice continuation arrangement is an arrangement, typically in the form of an agreement or contract made between an individual lawyer or a small law firm and another lawyer or law firm. The arrangement describes a course of action to transfer a lawyer’s practice and sets payment for its value. In the event of vacation, temporary or permanent disability, or death, a practice continuation arrangement protects the practice, the business interests of the lawyer or law firm’s clients, and the financial interests of the lawyer.