Vermont Bar Association. Succession Planning. June 21, 2012 Windjammer Hotel & Conference Center S. Burlington, Vermont

Transcription

1 Vermont Bar Association Seminar Materials Succession Planning June 21, 2012 Windjammer Hotel & Conference Center S. Burlington, Vermont Faculty: Kevin F. Ryan, Esq. James E. Knapp, Esq. Michael E. Kennedy, Esq.

2 VT Bar Association Continuing Legal Education Registration Form Please complete all of the requested information, print this application, and fax with credit info or mail it with payment to: Vermont Bar Association, PO Box 100, Montpelier, VT Fax: (802) PLEASE USE ONE REGISTRATION FORM PER PERSON. First Name Middle Initial Last Name Firm/Organization Address City State ZIP Code Phone # Fax # Address Succession Planning June 21, 2012 Windjammer Hotel & Conference Center REGISTRATION: 8:30 A.M. SEMINAR: 9:00 A.M. 12:00 P.M. 3.0 MCLE CREDITS (INCL. 1.0 ETHICS CREDIT) Early Registration Discount by 06/14/2012 Registration Received After 06/14/2012 VBA Attorney Members: $100 Non VBA Members/Atty: $240 Associate VBA Members: $75 All Others: $80 VBA Attorney Members: $120 Non VBA Members/Atty: $260 Associate VBA Member: $95 All Other: $100 NO REFUNDS AFTER June 14th, 2012 PAYMENT METHOD: Check enclosed (made payable to Vermont Bar Association) Amount: Credit Card (American Express, Discover, Visa or Mastercard) Credit Card # Exp. Date Cardholder:

3 Vermont Bar Association ATTORNEY CERTIFICATE OF ATTENDANCE Please note: This form is for your records in the event you are audited Sponsor: Vermont Bar Association Date: June 21, 2012 Seminar Title: Location: Credits: Succession Planning Windjammer Hotel & Conference Center, S. Burlington, VT 3.0 MCLE (includes 1.0 Ethics Credits) Luncheon addresses, business meetings, receptions are not to be included in the computation of credit. This form denotes full attendance. If you arrive late or leave prior to the program ending time, it is your responsibility to adjust CLE hours accordingly.

4

5 Succession Planning Beth DeBernardi, Esq James Knapp, Esq. Kevin Ryan, Esq.

6 Introduction Who s here Triggers for succession situations Death or Disability No Plan or a Plan Succession Internal Transfer External Transfer Sale Merger Acquisition Close Practice

7 Why Should I Worry The Ethics of Succession Planning

8 When You Can t Practice Best Result I have a plan Questionaire - Everything one needs to know Successor identified and prepared Worst Result I have no plan Limited options Court authorizes inventory Finding critical information Making the best of situation

9 Identified Successor Conflicts Issues What about the clients How to inform of situation getting permission to act Passing on authority to act Powers of Attorney (not if you are dead!) Bank Accounts (co-signatories) Of Counsel or Co-representation agreements

10 My Successor Needs to Know Systems Docket and calendar Checking and Trust Accounts ESI files URL s, login names, password Access to client information Safe deposit boxes Does the representative get paid? How?

11 Orderly Process for Succession Close the practice Bring on a successor Merge practices Sell the practice

12 Closing Your Practice Quick or Controlled Stop taking new matters Eventually causes cash flow issue Notices Clients Courts Insurance Companies Trust accounts and client property Inventory and disburse

13 Closing the Practice The files (oh the files!) Immediate issues and long term issues Identify any pending deadlines after closing date Disposition of current and closed files Identify service providers and close down services (utilities, online, , storage) Where will your telephone calls go? Safely dispose of computers, copiers, backups Destroy or disable storage devices

14 Still Closing That Office Financial Obligations Paid Close down bank accounts, safe deposit boxes Final tax returns filed Last step Dissolve business entity

15 Bring in a Successor Identify characteristics Who do I want to work with What do my clients need Start early the first may not work out Teach, train, mentor, help Good lawyer Good business person Introduce clients early and often

16 Still Working on a Successor How do I pay them Salary Shares Reorganize - Solo Partnership, PLLC, PLLP Is there a buyout How to set a price Retirement benefits (unfunded obligation) Of Counsel

17 From Two to One Merging Practices Solo finds another solo Solo finds a small firms Small firms grow Clash of the cultures People are key Merging the systems Computer (Data) Files

18 Sell the Practice The Rule You have to stop practicing if you sell the whole practice Valuation A Formula Make it up! Value of the hard assets Value of the work-in-process Value of good will or soft assets

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85