While this article does not discuss the different methods of evaluation, lawyers should keep in mind that there are no strict rules for evaluating a law firm. All legal practices are unique and different criteria must be used for each of them. Many intangible assets can influence valuation. However, the evaluation method must be agreed by both parties to the agreement and be an integral part of the agreement. The provisions of an implementation agreement must include an appropriate assessment and a realistic payment structure. What lawyers really want is to leave their surviving spouses or heirs, it`s something of all the difficult years of work it took to build the practice. To do this, the sale of the practice may be necessary at a favourable price to the buyer. Legal practices can lose value very quickly, which is why timing is essential. Strong practical continuation agreements can resolve this dilemma and preserve the value of the practice and help ensure that the spouse of a lawyer or direct heir is confronted with a hasty sale or over-discrimination of the practice in an emergency. A system of continuing practice can also ensure the safety of thought practitioners, their collaborators and their families. The previous company should notify all customers of the agreement in accordance with their cash government obligations and assure them that there will be no interruption of services when the practice changes ownership.
It is important to ensure that the surviving spouse or heirs are aware of the existence of the continuation agreement and understand its provisions. In addition, counsel for the previous lawyer`s estate should be familiar with the terms of the contract if he or she has not developed and negotiated the agreement. There are several types of continuation practices. As a general rule, a lawyer concludes a business, a company, a company or a professional company in the Community. Agreements can range from a simple “double mutual coverage” for leave or other temporary absences to the sale of the practice in the event of long-term disability or death. Lawyers must invest time and effort in finding appropriate successors to their businesses and in creating useful, fair and practical continuation agreements. The key — it`s finding the right person or the right company. However, investing in time is a good investment because the pursuit of good practices ensures that if a lawyer is not able to continue the practice, the value he or she has accumulated over the years will not be lost. The orderly transfer of a law firm to another lawyer or law firm is a significant financial benefit to the lawyer`s family.