QUESTIONNAIRE THE SMALL FIRM MERGER
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1 501 WEST COLFAX STREET 180 NORTH LASALLE STREET PALATINE, ILLINOIS SUITE CHICAGO, ILLINOIS QUESTIONNAIRE THE SMALL FIRM MERGER Definitions Practice Group: Practice Management: A substantive area of the law under which attorneys provide services to clients. The structure and disciplines necessary to run the business. 1) What are your firm s three (3) strongest Practice Groups, in order of strongest first? 2) What type of cases does your firm handle better than larger firms? 4) How many malpractice cases have been filed against your firm in the last 10 years? 5) What Practice Groups do you have that are challenges to manage? 6) What Practice Groups from the merging firm would your firm keep? Why? 7) How concentrated is your practice in your top five (5) clients (and affiliates)? List top 5 clients and the percentage of fees that such client represented to the firm. d. e. 1
2 8) After base salaries were paid to all employees, and reasonable bonuses paid, how much profit was distributed to partners last year? 9) What is your annual compensation package? Base salary: $ Bonus: $ Profit Distribution: $ d. Total annual monetary benefit: $ 10) How much profit (before partner bonuses) did the firm make last year? $ 11) How much does the highest paid administrative assistant get paid annually? $ 12) What is the starting salary for administrative assistants? $ 13) What is the standard compensation package for a first year associate? Base salary: $ Annual bonus: $ Other bonus opportunities: $ 14) Do you have a Group Healthcare plan? Yes/No If yes, how much does the firm contribute for the employee? $ For the employee s family? $ 15) Do you have a 401(k) plan? Yes/No How much is the employer s annual contribution? $ Describe the safe harbor provisions: 16) Do you have a high turn-over with employees? Yes/No If yes, describe why: 17) Grade your office manager (head of billing, accounting and banking, et) on a scale of 1-5, with 5 being the best: Worst Best Competence on your billing/accounting software Accuracy Handling irate client calls on billing d. Responsiveness to partner requests e. Overall accounting knowledge f. Managing support staff g. Sending out bills on time 2
3 18) What is your billing accounting software? 19) Rate the following disciplines on a scale from 1 to 5, 5 being the best, on how your firm performs. Worst Best All of your attorneys are committed to providing exemplary legal services and deliver A+ quality work product. All of your attorneys meet or exceed monthly billing goals. All of your attorneys are charged with the duty to market the firm, be involved in their communities, social organizations, and are active in bar associations. d. Your senior attorneys take the time, and are willing to train younger attorneys. e. All of your attorneys understand that the law office is a business and want to participate in the operation of the business and be profitable. f. How would you rate your firm s associate requirements or expectations to achieve admission to partnership? 20) Does your firm have documented systems and policies for: Billing Yes/No Managing account receivable Yes/No Marketing Yes/No d. Digital media marketing Yes/No e. Client communication Yes/No f. Hiring attorneys Yes/No g. Employee handbook Yes/No h. Accounting Yes/No i. Banking Yes/No 3
4 21) In terms of practice management, what are your firm s top 3 strengths, in order? 22) What are your firm s top 3 weaknesses in practice management, in order? 23) Which of the two law firms has better physical office space? 24) Which firm has better technology? 25) Do you have annual partner meetings setting the course for the following year s goals 26) Do you have a written business plan? Yes/No 27) What are your annual billing requirements for associates 28) What is the partnership track for an associate in years? 29) How many of your partners should be on the management committee of the merged firm? 30) Is the title Partner significant to you? 31) What are your marketing requirements for each attorney? Public speaking? Community involvement? Bar Association Activities? d. Chambers of Commerce? e. Trade Associations? f. Monthly networking meetings? g. Monthly lunches, coffees? h. Social digital media postings? 4
5 32) Why do you want your firm to merge? Grade the following on a scale of 1 to 5, with 5 being the highest: Lowest Highest A bigger firm means we can get larger clients To make more money So clients I used to refer out to other firms I can keep in house d. To cross sell existing clients to new practice groups e. Just because bigger is better in law firms f. We need help in certain practice groups, and the merger would provide that g. We need help with our practice management, and the merger would provide that h. To become licensed in other states i.e. expand geographically i. To obtain an expertise that we need j. To reenergize our law firm k. To increase or diversify client base l. To solidify clients in common with both firms m. Enhance the level of sophistication of work through breadth of services n. To follow the trend of firms to merge o. To correct existing internal weaknesses among staff (e.g. to fill gaps in age and experience levels, lack or rainmakers, lack of leadership, et) p. To control expenses or cure your existing firm s economic problems 33) What is a reasonable age for retirement? 34) Should there be a requirement that a partner convert his/her status as a partner to of counsel at retirement age? 35) What is your firm s mission statement? 36) Do you live it? 37) Do you have one year, five year, and ten year goals? Yes/No 38) Do you receive status updates on progress toward making them? Are they reviewed annually? Yes/No 39) Does your firm have a culture? Yes/No If yes, describe: 40) Why does your firm exist? 41) Is your personal reason for practicing law consistent with the firm culture and purpose? 42) Does your firm have a high energy winning atmosphere Yes/No 5
6 43) Do you have fun at work? Yes/No Why? 44) Does your firm sponsor firm outings for fun and team building? Yes/No If yes, how many per year? 45) Would you best describe your firm as a team or simply a group of attorneys sharing space to practice law? 6
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