LAW FIRM MERGERS, DISSOLUTIONS & SUCCESSION PLANS

There are a number of legal and ethical considerations that should be addressed when a law firm reaches the end of its life cycle. Typically, that comes up in the following three situations:

• two law firms merge practices;
• a law firm dissolves; or
• a law firm implements an existing succession plan.

The Nissenbaum Law Group is particularly suited to advising attorneys and their firms in such situations. That is because those transactions straddle so many corresponding practice areas in which the firm focuses.

This includes everything from the transactional work involved in documenting and negotiating the deal points to the compliance issues concerning the requirements of the local Rules of Professional Conduct to the digital law aspects of moving or terminating a law firm’s information technology infrastructure.

The firm’s representation in this regard generally involves some or all of the following:

• negotiating the corresponding term sheet (sometimes referred to as the memorandum of understanding or letter of agreement);
• preparing the contract implementing the merger, dissolution or succession;
• filing the appropriate documentation with the state relating to the old and new entities;
• preparing employment and/or independent contractor agreements for the members of the legal team;
• preparing trademark filings for the new entity;
• addressing the written consent that must be obtained from clients whose matters will be transferred from one firm to the other;
• reviewing the conflict of interest issues that may arise from the merger;
• following up on notices that must be given to the respective bars and courts in which the attorneys are admitted; and
• working with estate counsel and a financial advisor to prepare or implement a succession plan.

These and other legal issues must be addressed when representing a law firm in regard to a merger, dissolution or succession plan. The Nissenbaum Law Group welcomes inquiries relating to such matters.