Today’s market challenges leads to law firms closing. Choices that firms make in planning for wind-down are critical to a successful outcome. Our understanding of law firm wind-downs and strategies is incomparable; we led the design and execution of the most successful large law firm liquidation in the last decade. Hayse recognizes the position of all stakeholders and resolves creditor interests while recognizing the interests of law firm owners and staff. When a court controls the process and a fiduciary is appointed, Hayse can act as or advise the fiduciary. In those engagements, Hayse deploys its understanding of the complexities inherent in state and/or federal proceedings to good effect. Its familiarity with law firms and insolvency ensures that recoveries for parties in interest are equitable and maximized.
When a firm faces the daunting task of wind-down or liquidation it must be prepared to undo the institution it toiled to create and resolve issues that are of its own creation. No two firms face the exact same issues, but there are consistent themes that must be addressed in order for a wind-down or liquidation to conclude efficiently and with minimal pain and potential liability to the firm’s owners. A wind-down/liquidation often presents problems like:
- Desire on the part of former owners to move on and not be involved
- Assets that are insufficient to satisfy all liabilities
- Dead file storage concerns that touch on ethical and legal obligations to clients and others
- Financial reporting shortfalls that must be solved prior to dissolution
- Pressure from creditors and other parties that interfere with an orderly liquidation
Our wind-down/liquidation services for clients help solve these and other problems because we:
- Communicate with former owners with a message that results in cooperation
- Assure maximum realization of asset value and negotiate with claim holders so that the firm’s assets go farther
- Create a plan for resolving file storage issues that satisfy obligations to clients and former clients and pass muster with applicable state law and bar association requirements
- Work to create a financial reporting regimen that is reliable and trusted by the firm, its former owners and other parties in interest
- Relieve creditor pressure through communication and persuasion
If we are appointed as a fiduciary or are hired to provide assistance to one, we would:
- Strike the right balance between seeking former owner cooperation and recognizing the adversity of interests
- Manage potential claims or litigation so estate value is maximized and not consumed by administrative costs
- Recognize that “time is money” and proceed with due dispatch
- Administer the estate as transparently as is reasonably and strategically possible