The need to restructure a law firm can arise from a number of developments. Firms which experience the loss of significant clients, practice groups, offices or key lawyers or firms whose cost structure is out of control all are in need of some degree of restructure. Even a healthy firm sometimes needs restructuring to gain operational efficiency, improve its financial leverage or reposition it for a new strategic direction. Hayse identifies the issues that matter, and develops solutions that lead to sustained firm health.

Firms face different issues when the need to restructure beckons, but based on our experience in restructuring activities, most restructuring scenarios include some of the following:

  • Recent departures by key contributors to the firm
  • A decline in morale among remaining owners and employees
  • Excess lease space and out-sized overhead for the current size of the firm
  • Burdensome level of debt to firm size
  • Lender concern or lender exercise of remedies
  • Decline in revenue
  • Loss of clients

Frequently, we provide restructuring assistance where we:

  • Work with our client to develop a trustworthy set of projections on which the restructure can be based
  • Assess the reasons for the departures and the risk of further departures
  • Develop a plan to stem the loss of key attorneys and staff
  • Develop a communication plan that is designed to improve credibility and morale
  • Develop a real estate and overhead rationalization plan
  • Engage in discussions with the lender(s) to restore and/or improve a trusting relationship
  • Assess and address any revenue decline
  • Assess and address client issues that may have and are contributing to the loss of clients