How to transition your clients to a new law firm

how to transition your clients to a new law firm

 

Whether you have decided to close your practice completely, or to exit a specific area of law, one of the most important elements you must consider within your plan is successfully moving your clients to your new firm.

Transitioning clients to a new law firm requires careful planning, effective communication, and a focus on maintaining strong client relationships. The key to a successful transition process lies in ensuring that your clients feel supported, informed, and confident in the continued delivery of exceptional legal services.

Reasons for transitioning your clients to a new firm

  • Financial difficulties: With many firms feeling the financial pressures of the cost of living crisis, combined with the continuous changes to the legal landscape, many firms may have no option but to close. Others may make the strategic decision to restructure their firm and/ or exit a less profitable market to focus on more lucrative areas of law. Due to this, clients of the firm will need to be transitioned to an alternative law firm with the expertise, and capacity, to deal with their case.
  • Retirement: The retirement of a sole practitioner will often lead to the closure of a law firm. In some larger firms, the retirement of a partner may necessitate  the closure of a specific department within a law firm. In these circumstances, client files will also need to be dealt with and moved to another firm so that the cases can continue with minimal disruption.
  • Mergers and acquisitions: Mergers and acquisitions (M&A) in law firms occur for various reasons, driven by both internal and external factors. These strategic moves usually aim to enhance the firms’ competitive position, expand their market presence, and capitalise on new opportunities. Quite often in these circumstances, firms will be required to exit a specific legal market to allow the merger or acquisition to proceed. Client files must therefore be transferred to an alternate firm of solicitors in these circumstances.
  • Voluntary closure or exit: In some circumstances, law firm owners may wish to close their firms voluntarily for many reasons, such as a career change. Others may opt to exit a specific legal market to focus on another area of law. Whatever the reason, a smooth client transition to another firm will be required.

 

How to transition your clients to a new law firm

Whatever the reason for your exit from the market, you will want to transition your clients to a new law firm as quickly and smoothly as possible. A successful client transition to a new law firm hinges on clear communication, trust-building, and maintaining a client-centric approach. By proactively managing the transition process, you can help your clients navigate the change smoothly and maintain strong professional relationships.

  • Plan ahead: Begin the transition process well in advance to allow sufficient time for a smooth handover. Evaluate your client portfolio, identify any potential challenges, and develop a comprehensive transition plan tailored to your client’s needs. You should also engage with the right professional advisors for your situation, such as a restructuring specialist.
  • Inform clients as soon as possible: You should reach out to your clients as early as possible to make them aware of the situation. Communication is vital in easing client concerns and building trust. Personally inform your clients about the upcoming transition, emphasizing the benefits and capabilities of the new firm. Address any questions or uncertainties they may have and provide reassurance regarding the continuity of their legal representation.
  • Confidentiality considerations: Ensure compliance with statutory and ethical obligations to  maintain strict confidentiality throughout the transition. Discuss any potential conflicts of interest with your new firm and establish protocols to address these issues appropriately.
  • Continuity of service: Ensure a seamless continuation of service by facilitating a smooth transfer of client files, documents, and other pertinent information to the new firm, both paper and electronic data. Coordinate with the new firm’s team to establish clear responsibilities, deadlines, and workflow processes to ensure a consistent and uninterrupted service experience for your clients.
  • Speak to Recovery First: Recovery First can assist in transferring your clients to a new firm whether you decide to close, merge, or restructure your firm. Our team manage the transfer of files from start to finish, placing case files with an approved law firm to protect the integrity of the client’s case, ensuring a smooth and seamless process.

 

Why choose Recovery First?

The Recovery First model can be used to transfer client files to a new law firm and ensure SRA compliance.

We provide a solution for law firms directly, as well as insolvency practitioners, accountants, restructuring and corporate recovery specialists helping law firms to withdraw from the market – even in distressed situations where SRA intervention is a threat.

As each project is unique, the flexibility of our model allows us to create a bespoke solution to ensure the best outcomes are achieved. We do this by utilising the specialist expertise of our panel law firms to ensure maximum value is recovered for the WIP assets.

As our model aligns all parties’ interests on success at conclusion of cases, there is no need for any lengthy due diligence, so we are able to act very quickly.

Our service provides a methodology which:

  • Is SRA compliant and ensures clients are protected
  • Provides compliant formal commercial contracts between all parties
  • Manages the transfer process of live matters from original firm to our panel firms
  • Provides financial management of the costs recovery process, including the allocation and distribution of funds
  • Provides you with access to a dedicated, experienced management team to oversee the process from investigation to conclusion

Our clients receive 100% of their recoverable WIP, plus their allocated entitlement of deductions from damages.

We guarantee 100% confidentiality for all clients. Get in touch today using the contact information below or click a button at the top of the page and we will contact you to discuss the process.

It's never too late to speak to Recovery First. Contact us now in the strictest confidence

Sally Dunscombe:

sally.dunscombe@recoveryfirst.co.uk

David Johnstone:

david.johnstone@recoveryfirst.co.uk

Telephone:

01357 440140

Manchester Address

106 Kennedy Building

Murray Street

Manchester

M4 6HS

Registered Address: 

North Torfoot

Drumclog

Strathaven

ML10 6QG