I have many thoughts about family business succession. Here are a few of them:
Tag: lawstudents
Many of you will be familiar with the old saying (sometimes attributed to John Adams and other times to Winston Churchill) to the effect that “if you are not a socialist at age 20, you have no heart, but if you are still a socialist at age 30, you have no brain.”
Let’s say that you represent a 40% shareholder in a corporation. You are reviewing a shareholder’s agreement which says that in certain circumstances (death, disability, termination of employment) your client is required to sell his or her shares at fair market value. So far, so good.
Let me start by saying that I really, really, like accountants. I had deep and valued relationships with a number of accountants when I practiced law, and they were by far my best referral sources. Many became good friends. So, the negative stories which I am about to tell relate to a tiny minority of the accountants who I came across.
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The Power of Doubt
Back when I was practicing law, I used to say that my greatest skill was doing lunch. I did an awful lot of lunch with some pretty good business development results. I have previously written about how I used my lunch meetings to develop personal relationships. You can read about that here: Eating Your Way to A Great Client Base
During my lunch meetings with potential clients, I often used the power of doubt to sell my legal services.
I have decided not to pick on Big Law today for a change. Let’s talk about smaller firms with entrepreneurial founders instead.
Sometimes lawyers call me and tell me about how they feel about their law firms. They don’t call me if they are happy. They call me when they want out. Out of the firm, out of their practice area, out of private practice, out of the practice of law altogether. Out of something.
I have heard a good number of tales of woe. One interesting theme is around the flaws of law firm founders. Serious flaws. The type of flaws that drive good people to head for the exits. I have termed this Founder Deficiency Syndrome. It sort of has a nice ring to it, don’t you think?
There was once a law firm which had a particular department which experienced some turn-over in its associates. Lots of turn-over, actually.
The department in question was headed by a lawyer with a ‘strong personality.’ I am not qualified to give a psychological diagnosis of this lawyer, but if I were, I would probably say that this person was a narcissist. If I was being nice.
Canadian Business Lawyers: You may be negligent if you don’t know that:
Beginner lawyers need to understand Partner Talk (“PT”), which is the language that law firm partners use.
Here to help the newbies are some translations from Partner Talk to Plain English (“PE”):
Many of us think that the legal profession is broken, because too many lawyers are stressed out and miserable. Law firms are throwing money at the problem. Apparently unsuccessfully. A few brave souls are attempting to start solo practices or small firms which operate on different, and more humane and sustainable principles. But apart from that, the profession seems to be lurching along as it always has and continuing to chew up, and sometimes spit out, those lawyers who are determined to have a life outside of practicing law.