Best Practice: Law firm acquisition due diligence - Using client surveys to ascertain client retention
Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. Our firm, a 22 attorney law firm in Chicago, has been contemplating acquiring a 6 attorney firm in the suburbs. We believe we have done an adequate job of due diligence regarding financials, people, culture, systems, and practice-mix compatibility. Our concern is client retention. What are your thoughts concerning how we can determine if the clients will stay with us?
A. Why not ask the clients?
Much can be learned by talking to the firm's clients. Structured telephone interviews and other forms of surveys conducted by a neutral third party can uncover many surprises as well as answers. Client satisfaction surveys can be one of the best due diligence tools that you can use.
It is good business practice to see how clients might react to a acquisition or merger. Understanding where your prospective firm's clients stand and how they feel about service quality can be one of the most valuable inputs into your due diligence process that you can get your hands on. Finding out where your prospective firm's clients stand can tell you a lot about their future retention.
Before you invest significant time, money, or effort in developing an overall acquision/merger implementation strategy, survey your prospective firm's clients to understand where their clients stand.
You must be careful using this approach and insure that it is done with the permission and in concert with the prospective firm. The approach must be setup, communicated and coordinated properly. It must be sensitive to clients and done in a way to communicate and reinforce positive rather than negative signals to the clients involved.
As part of its Chicago office rehab, the Illinois State Bar Association has 10 office chairs available for $150 each. The chairs are green and in good condition. They have been in the Chicago office library for the past few years.
Two JAG officers will be on hand to answer general legal questions of service members and their families at the Illinois State Fair on Sunday, August 14, from 10 a.m. to 7 p.m., courtesy of the Illinois State Bar Association (ISBA).
ISBA President-elect John E. Thies of Urbana was named President-elect of the National Caucus on Bar Associations at the recent ABA Annual Meeting in Toronto. The purpose of the caucus is to coordinate the efforts of state bar associations across the country in considering and proposing matters before the American Bar Association House of Delegates. Thies' term as president will coincide with his year as ISBA president (2012/13).
ISBA Council member Michael G. Bergmann took the gavel as the new president of the ABA Young Lawyers Division on Saturday, August 6 at the ABA Annual Meeting in Toronto. Bergmann is the Executive Director of the Public Interest Law Initiative (PILI) in Chicago. Bergmann is pictured (second from right) with fellow ISBA Section Council members (from left) Tarek Fadel, Kenya Jenkins-Wright and Bob Fink (ISBA YLD Immediate Past Chair).