BUSINESS PLANS
Details to Include
Practice Description. Briefly describe the nature of your practice, including areas of expertise or specialization; it is ideal to provide breakdowns (e.g., example 30% M&A, 25% private equity, etc.).
Practice Development to Date: What you have done to develop your practice to date. Although the LPQ will cover your business development track record, it doesn’t hurt to reiterate your main clients, your origination track record over the past few years, and your billing rate.
Highlights/Accomplishments: Any highlights about your practice (e.g., particular high-profile deals or cases) and/or industry recognition.
Firm Citizenship: Leadership roles, etc.
Key Strengths: What are your unique strengths as a partner? Where do you see yourself adding the most value to a new firm/practice?
Future Goals: Where you want your practice to be in the next 3-5 years. For example, do you want to expand your practice area or enhance a particular industry focus? Are there additional clients you want to pursue, but you are limited at your current firm due to conflicts, rates, or geography?
Industry Trends: What industries do you focus on? What is happening in your particular industries that could create more opportunities at the new firm? What are the untapped opportunities, and how are you positioned to capitalize on them?
Limitations or Challenges with Current Firm (this is optional, depending on the particular circumstances of your situation): Why are your future goals difficult to accomplish at your current firm? Note: the challenges can also be “softer” factors such as the manner in which client credit is shared is not consistent with the type of culture in which you enjoy practicing, etc. Be careful, however, not to come across as venting your frustrations. The more this focuses on business and the limitations of your practice, the better.
Connect the Dots – Why the New Firm Could be a Mutual Match (this is perhaps the most important section).
Your understanding of the new firm’s goals/strategic needs as it pertains to your practice (based on your discussions).
How your background/experience could fit into the firm’s goals/strategic needs.
How the new firm could help you (1) more easily accomplish your goals and/or (2) reduce some of the challenges with your current firm. In short, how could both sides come together in a way that meets everyone’s needs?
Your Network of Contacts: Include a list or chart of people you plan to continue doing business with, and those you expect to approach to develop new business. The ideal format for the headers is the name, company, title, and the nature of your relationship, including how long you have represented the client (if they are a current client). This can include the new firm’s clients to the extent it has been discussed already. If you mention the new firm’s clients, be sure to adopt a collaborative tone, pitching together as a group rather than as a lone wolf. Note: Some partners are understandably reluctant to “share their rolodex” too early in the process. If you are uncomfortable, it’s ok to hold off on providing too much detail regarding your network if it’s still early in the process and you are unsure if the firm is a fit. If the firm presses you for information on your network and future prospects, you can equalize the process by asking the firm to share information on their main clients/contacts as well, so it’s more of a “mutual brainstorming.”
Specific Business Development/External-Facing Activities: Many business plans have generic sections such as “Writing: I plan to write articles” or “Speaking: I plan to speak at industry conferences to help get my and the firm’s name out there.” There is nothing wrong with this, but it often comes across as very generic. To make more of an impact, provide specific examples of what you have done to date and what you plan to continue doing. For example, are you on the Board of any high-profile publications, or do you often participate in certain industry conferences?
Economics
Assembling financials in an LPQ will be required during the due diligence stage. However, the ability to discuss the economics of your practice in detail is vital throughout the process. Below is a Prep Worksheet to help you gather the pertinent financials and clients. Reviewing the information in this format is a valuable preparatory exercise for substantive meetings. You can also use it as a supplement for sections of most lateral questionnaires.