Who Takes the Helm Next? The Succession Crisis Hiding in Plain Sight

The Quiet Risk Nobody Wants to Talk About

Law firms love to plan for everything — except succession.

They’ll map out their next marketing campaign, new practice launch, and even next year’s CLE budget. But ask about what happens if a founding partner retires, gets sick, or simply burns out, and the room goes silent.

That silence is expensive.

According to Thomson Reuters’ 2025 Law Firm Financial Index, more than 60% of midsized firms have no documented leadership or ownership transition plan. Yet partner retirements are accelerating.

It’s not a lack of awareness — it’s avoidance. No one wants to imagine stepping away from the firm they built.

What Happens When There’s No Plan

Here’s what I’ve seen up close:

• Clients drift because they don’t know who to call.

• Rising leaders leave because no one communicates a path to equity.

• The firm’s valuation plummets because the “brand” is one person.

One Dallas-area boutique I consulted for saw a $4 million potential sale fall through because 80% of revenue was tied to one partner who had no transition plan. The buyer walked.

The “Listener Question” That Inspired This Post

“How do you even start a succession plan when you’re a 10-lawyer firm and everything still runs through the founding partner?” — Reddit r/LawFirm thread

Great question — and the most honest one I’ve seen.
Succession planning doesn’t require a boardroom strategy retreat. It starts with clarity: who owns what, who’s next, and what’s missing.

Step 1: Identify the Future

Every firm has hidden leaders — senior associates or non-equity partners who already act like owners. Start there.
Create visibility into leadership potential early: business development results, team influence, and values alignment.

Then communicate the path: Here’s what ownership looks like, and here’s how you can get there.

Step 2: Separate Ownership from Management

Not everyone who deserves equity wants to run operations.
And not every manager should be an owner.

The healthiest firms decouple equity decisions (rewarding value creation) from leadership roles (driving execution).
That keeps talent incentivized without overloading them.

Step 3: Document Everything

Succession that lives in one partner’s head isn’t a plan — it’s a liability.

Build a short operational continuity binder:

• Key client contacts

• Billing policies

• Vendor relationships

• Access to systems, passwords, dashboards

If a key leader steps away, the firm keeps moving.

Step 4: Address the Money Question

Most founders overestimate what their firm is worth because they mistake revenue for value.

Without a second tier of leadership or recurring client work, valuation multiples collapse. (More on this in next week’s valuation post.)

Start treating leadership readiness like a line item that builds equity.

Step 5: Start Before You’re Ready

Succession doesn’t mean stepping down — it means building something that survives you.

Start the conversations while things are stable.
That’s when people are honest, not reactive.

Dallas Firms, Take Note

Texas has been one of the hottest markets for lateral movement, but that’s slowing.
Many Dallas boutiques are realizing that growth without leadership depth leaves them vulnerable if a rainmaker exits.

In a market full of opportunity, continuity becomes a differentiator.

The COO’s Role in Succession

A Fractional COO helps firms build operational and leadership infrastructure that outlasts any one person.

They:

• Define succession readiness metrics

• Build clear accountability charts and role transitions

• Document the business in a way that preserves value for future owners

Succession isn’t a someday conversation — it’s an operational discipline.

The Bottom Line

If your firm’s future depends on one person showing up every day, you don’t own a firm — you own a job.

The good news? You can change that.
Start documenting, developing, and delegating now so the next generation can step in with confidence.

At ING Collaborations, I help law firms turn succession from an uncomfortable conversation into a strategic advantage. If your future leadership plan still lives “in your head,” let’s get it on paper — and make it profitable.