A Guide for Retiring Practitioners
Smith and Partners have recently assisted a number of retiring practitioners with the transition into retirement and the transfer of their clients and client records and deeds.
Retiring from practice is a significant milestone, and it comes with a mix of emotions and practical considerations. As you prepare to hand over your practice, it’s essential to think about various aspects to ensure a smooth transition for both you and your clients. Here are some key points to consider and how we can assist in this process.
After an initial discussion to consider transitioning your practice to Smith and Partners we typically record the process into a non-binding heads of agreement that sets out the top-level points we consider relevant and gives the parties comfort that matters remain confidential while the formal terms are finalised.
Transitioning clients and client records
A smooth transition of clients and assets is vital. We can work with you to communicate the sale to your clients, explaining the implications and how they can contact the director assigned to your clients at Smith and Partners. This joint communication helps maintain client trust and ensures they feel supported during the transition.
Transferring records is another critical aspect. This includes intellectual property such as client lists and deeds together with any live matters and associated trust account balances. Ensuring that all these elements are handed over properly will help us to continue providing seamless service to your clients. Our office systems team works closely with our IT providers and is adept at transferring phone systems, and electronic records and data from other practices.
Legal and compliance requirements
It’s essential to comply with any legal and regulatory requirements during the sale. This will include adhering to Law Society and professional indemnity insurance run out requirements, and maintaining confidentiality throughout the process.
Post-sale support
Providing post-sale support can significantly ease the transition for the purchaser. This might involve a period of initial assistance and then being available remotely for a more extended period. Such support ensures that any transitional issues are handled smoothly, and that we can continue providing high-quality service to your clients.
Valuation and due diligence
One of the more complex initial steps in selling your practice is determining its value. We have experience in calculating a fair price based on practice turnover and it may involve setting an indicative purchase price, which can be adjusted based on our due diligence. The due diligence process is crucial as it helps us understand the financial health of your practice, the client base, and other relevant details. This might include reviewing financial statements, review of client files and file notes, and other documents to determine the practice’s value and fit with our firm and culture.
Settlement and final agreement
Agreeing on a settlement date and documenting the terms into a formal agreement is the final step. This formal agreement will incorporate all the usual commercial terms and warranties, ensuring that both parties are clear on their obligations and expectations.
How we can assist
Collaborating on client communications helps reassure clients about the continuity of service and introduces them to our firm. Integrating your systems and processes with ours ensures a seamless transition, aligning or adjusting fee structures, practice management systems, and compliance programs.
We will work hard to make the process as stress free as possible and welcome your ongoing support, both in-person and remotely, to handle any transitional issues and ensure a smooth handover of active matters.
In conclusion, retiring from practice involves careful planning and consideration. By addressing valuation, client transition, legal requirements, and post-sale support, you can ensure a smooth and successful transition. We will work closely with you to maintain client trust, to ensure the continued success of your practice and so that your professional reputation is upheld.
If you are interested in a confidential no-obligation chat to better understand the process please contact one of our directors: Wade Hansen on 09 837 6885, Carolyn Ranson on 09 837 6891, or Bret Gower on 09 837 6893.
