When a solicitor reaches a certain age, they will inevitably be required to make the decision to retire. In some cases, the retirement of a solicitor may mean that the firm decides to exit a specific area of law, in others, more commonly, sole practitioners, it will require the closure of a law firm completely.
Paul Bennett from Aaron and Partners has discussed the options available to those deciding to cease trading due to retirement or any other reason: –
“The range of options is: closure; sale of all or part to another firm; internal acquisition by a solicitor; creation of an ABS to enable a non-lawyer to own the business; [or] external parties agreeing to buy the firm and operate it under the current name.” (Law Society Gazette)
There are a number of steps that must be taken when deciding to retire as a solicitor, and these will depend on the route you choose to take for your firm.
How to retire as a solicitor
- Plan well in advance: When retiring as a solicitor, preparation is key to ensure the transition is as smooth as possible. It may take 2-3 years to fully prepare for your retirement, especially if you make the decision to sell your firm. Having a discussion with Recovery First/R&R Solutions about your options will ensure that you make the best decision for your firm when you decide to retire.
- Find out if you require run-off cover: If you cease practice of your firm, you will be required to have appropriate run-off cover in place to cover the costs of any claims made against the firm after they have closed.
- Inform your clients: Whether you decide to close, sell, or merge your firm, you should always keep your clients informed so that they can decide whether they would like to move their case to another firm of solicitors.
- Inform the Solicitors Regulation Authority (SRA): You should always keep the SRA updated on any changes to your firm. If you plan on closing your firm, you should provide legal notice by filling in a Firm Closure Notification form. Taking advice from a compliance professional will often pay dividends.
Using R&R Solutions to assist when retiring as a solicitor
The R&R Solutions model can be used to assist in the retirement of a solicitor, whether they are a sole practitioner, sole partner, or a larger firm looking to exit a specific market due to the retirement of a partner. Whether you decide to close, merge, or restructure your firm, we can help.
We also provide a complementary service for professional advisors that assist in the closure or restructuring of law firms, such as advisory only accountants and restructuring specialists.
Our process involves discreetly selling a firm’s cases to multiple purchasers on our panel of solicitors. This mitigates the risks to the buying firms and results in a higher value for the work in progress (WIP) being recovered, whilst ensuring SRA compliance.
If you decide to close your firm due to retirement, we can assist in the orderly run off of files, ensuring full SRA compliance.
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.
We are an accountancy service provider that has built specialised software and processes to liquidate the full value a law firm has locked into WIP over time. We monitor case progression and conclusion in real time and account back to our clients for the value realised on an agreed reporting period.
Why choose R&R Solutions to assist in retiring as a solicitor?
Although retirement is a time which should be used for rest, relaxation and enjoyment, the process of retiring as a solicitor can be quite comlex, especially if you are required to close your firm as a result. Whatever the route you choose to take for your firm, R&R Solutions will ensure the most positive and profitable outcome is achieved.
The selling firm’s clients not only get a seamless transfer, but they will also be matched with a firm specialised in their particular needs.
Our services are suitable for all types of legal work, using a simple, ongoing process with no up-front costs.
We guarantee 100% confidentiality for all clients. If you would like to find out more about R&R Solution’s process, feel free to get in touch today via email (email@example.com), telephone (0845 056 1258) or contact Sally Dunscombe at firstname.lastname@example.org or 07774 205 870.
Retirement Project - Grant Saw Solicitors LLP
“With our claimant personal injury partner retiring in we decided the time was right to step back from PI work. We reviewed the market options, were disappointed at the discounts being applied by potential buyers of the WIP and were referred to R&R’s offering the full realisation of WIP over time. It has effectively delivered what it “said on the tin” - over the project period we have seen a steady flow of receipts being accounted for to us, allowing us to recover the full value we had built up in the files."
- Mike Clary, Partner
Restructuring Project - Copley Clark
“Having taken a strategic decision to be completely step out of the claimant personal injury sector we were R&R’s first client to step back on a phased basis. R&R customised their offering specifically for us and I am happy to say it has worked a treat. We could focus our own resource on matters where we had a possibility of concluding within our timetable and utilised R&R’s panel firms to continue to work on other matters. Not only have their services allowed us to retain the value we had built in the files, the nature of the services ensured we were able to offer our clients the option of moving to firms with the skill sets required to best service their specific needs. For firms considering restructuring we would have no hesitation recommending R&R Solutions."
- Malcolm Lawrence, Partner
Restructuring Project - Farley Dwek Solicitors
" We had an extremely positive experience working with R&R Solutions after making the strategic decision to move away from an area of law and retune our business model. The process was very straightforward, and we were really pleased with the overall outcome. We would highly recommend the Recovery First model as a practical solution to any law firm wishing to exit a specific sector.”
Jonathan Dwek, Director
Ticking all the boxes for a quick, clean, confident exit from legal markets due to restructuring or retirement.
Contact us now in the strictest confidence
07774 205 870
07887 796 989
106 Kennedy Building
PO Box 632