Professional Practices Alliance Podcasts

Transitioning from Founder-Led to Perpetual Governance Models: The Most Difficult Challenge that Many Professional Service Firms ever face

The transition that any firm must undergo if it is to survive and thrive after its founders retire affects every aspect of the organisation. It is at the same time both strategic and intensely personal. For founding partners, it involves giving up control of an organisation that in many cases defines who they are and trusting the next generation to lead and manage it into a successful future. For that next generation, it means stepping up to a whole new level of responsibilities. It almost always involves difficult discussions, including about money, power and influence. For the firm’s employees, the outcome determines no less than their future livelihoods. For clients, such transitions can significantly impact the quality of service that they receive in both the long term and while the transition is underway.
This issue is deeply relevant in 2021; the (then) young entrepreneurs who founded a disproportionately large number of professional service firms in the early 1990s are fast approaching retirement. Many have been immensely successful, building firms that stand proudly pre-eminent in their markets. The role that those founders will play in their twilight professional years, and indeed whether or not these firms will even survive without their founders, depends on how well the transition is planned and executed.

In this panel discussion recording, you can hear Session Chair, Rob Millard (Founder, Cambridge Strategy Group – Law Firm Management Consultant) and esteemed panellists, Fernando Peláez-Pier (Founding Partner, Hoet Peláez Castillo & Duque- a former president of the International Bar Association and the Lex Mundi network), David Shufflebotham (Founder, PEP Up Consulting – Partner Remuneration Specialist), Claire Watkins (Partner, Buzzacott LLP – Head of Professional Practices Group) and  Zulon Begum (Partner, CM Murray LLP – Partnership and M&A Law specialist),  discuss and provide expert insights on the major challenges and considerations for such transitioning firms, including:

The relative merits of potential exit models to balance founders’ and next generation partners’ interests, including a straight return of capital and profit share (or “naked in, naked out”); post-retirement annuities; consultancy arrangements; sale on exit based on agreed value (and typical valuation approaches and expectations); and returns based on a future capital event.
Developing a governance transition strategy and adequate succession planning, including understanding the firm’s current position and future requirements as well as managing timing and communications.
Issues involved in transitioning family-owned firms, including challenges caused by not having clear, institutionalised governance, processes and opportunities for all partners, the need to have open early conversations about the exiting partners’ interests and to build consensus on the firm’s future.
The legal and operational issues and how to approach key provisions in the firm’s constitutional documents, including weighting of founder and next generation voter rights, profit sharing arrangements, anti-embarrassment clauses, annuity provisions, post termination restrictive covenants, admission of new partners, partner “lock-in” provisions, mandatory retirement age and change to firm name clauses (amongst others).

Transitioning from Founder-Led to Perpetual Governance Models

We are delighted to share with you the recording of our recent webinar, ‘Cash, Remuneration and Economic Uncertainty’, in which partnership and regulatory law specialists discuss navigating economic uncertainty and how this can be successfully achieved within professional firms.

Robert Millard of Cambridge Strategy Group, David Shufflebotham of Pep Up Consulting and Corinne Staves and Andrew Pavlovic, Partners at CM Murray LLP, explore the important and practical considerations professional practice firms ought to consider in these times of economic uncertainty. Their discussion addresses key questions and topics including:
•	What key commercial changes are affecting firm strategy and their decision making?
•	What sources of capital firms should be looking to in the new high interest rate landscape; are the traditional methods still viable? 
•	How can firms better structure their own governance to appear more attractive to private equity and bank funding?
•	Strategic options available to mid-market firms to maintain financial resilience; 
•	Key considerations of financial health from an SRA perspective; at what point do the SRA get involved with a firm in financial distress? How do the SRA view different forms of funding?
•	What does the financially resilient law firm of the future look like?

Cash Remuneration & Economic Uncertainty

We are delighted to share with you the recording of our recent webinar, ‘Managing Partner Performance in Professional Services Firms, Evaluating Contribution and Using Partner Processes to Drive Your Firm’s Strategy’, in which partnership and regulatory law specialists discuss how to manage successfully partner promotion and remuneration processes within professional services firms.

Jeremy Callman, Barrister at Ten Old Square, David Shufflebotham of Pep Up Consulting and Sarah Chilton and Andrew Pavlovic, Partners at CM Murray LLP, explore the important and practical considerations professional service firms ought to consider when making decisions about partner promotions and remuneration. Their discussion addresses key questions and topics including:

What do the regulators, such as the SRA, expect regarding workplace culture and partner performance? How does this impact firm strategy and decision-making?
 
What factors should an organisation consider when developing its partner promotion and remuneration strategy and processes?
 
What does an effective partner performance evaluation process look like? 
 
What governance powers and documentation are required to implement these evaluation and remuneration processes?

If you would like to discuss any of the above issues in further detail, please contact Partners Sarah Chilton and Andrew Pavlovic, who specialise in partnership, professional discipline and regulatory law issues for firms and partners.

Managing Partner Performance in Professional Services Firms & Evaluating Contribution

We are delighted to share with you the recording of our recent webinar, ‘How Do You Attract and Retain ‘High Flyer’ Partners?’, in which partnership specialists discuss navigating the recruitment process for high flyers and important issues facing such decision making within professional practice firms.

n this recording, Chair Corinne Staves (Partner, CM Murray LLP), Dr Robert Millard (Cambridge Strategy Group), David Shufflebotham (PepUp Consulting), and Zulon Begum (Partner, CM Murray LLP), are joined by guest speaker Siobhán Lewington, Partner at transatlantic legal recruiting firm, Macrae. The panel explore the key challenges involved in attracting and retaining ‘high flyer’ partners, who are often at the very heart of the engine room of many firms. Their discussion addresses key questions and topics, including:

- What do we mean by high flyers; what might firms be looking for?
 
- The extent to which firm culture, partner performance and succession planning are key strategic considerations
 
- How can firms elevate the high flyers already identified within their ranks?
 
- Should firms guarantee offer compensation packages or are they too flawed with difficulties?
 
- How can firms manage any tensions between high flyers and other partners?
 
- The ways in which integration plays into promoting the long-term success of high flyers within a firm

How Do You Attract and Retain ‘High Flyer’ Partners?

In this panel discussion, subject specialists share their expert insights into the interesting and challenging features of LLPs that they have seen over the last 25 years and what they see approaching on the horizon for LLPs. 

Jeremy Callman (Ten Old Square), Dr Robert Millard (Cambridge Strategy Group) and Corinne Staves (CM Murray LLP) join chair Sarah Chilton (CM Murray LLP) to explore the key benefits of using LLPs in professional services, the trends they have seen – including in LLP disputes – key tax changes and issues, strategic considerations as well as what the coming years may hold for LLPs. Their discussion addresses key questions and topics including:

- How has the structure of LLPs developed since birth; what are some of the key elements of different LLP structures and their implications?

- Financial services LLPs vs professional services LLPs: the difference in attitudes on mutual trust between partners and duties of good faith at law and in LLP agreements;

- The use of English LLPs across the world, their evolution in different jurisdictions and how the increase in larger LLPs has affected strategic decisions;

- Risk considerations: tax, regulation, liability and litigation;

- Which partner remuneration trends have LLPs imported from other sectors and have they led to more or fewer disputes?

- What are the differences, if any, in downward incentivisation between LLPs and more corporate structures?

- What does the next 25 years hold for the future of LLPs?

If you would like to discuss any aspect of LLPs or if you have any questions arising from this recording, please contact Partners  Corinne Staves or Sarah Chilton, both of whom specialise in partnership law.

The LLP: 25 Years On - Professional Practices Alliance Webinar

We are delighted to share with you the recording of our recent webinar, Professional Services in the Age of AI: Regulation, Strategy, and Real-World Impact. 

In this discussion, Anthony Davis (FisherBroyles), Devika Kewalramani, (FisherBroyles), Dr Robert Millard (Cambridge Strategy Group), David Shufflebotham (PepUp Consulting) and Nick Leale (CM Murray LLP) join chair Corinne Staves (CM Murray LLP) to explore the impact of technology on professional services firms, with a particular focus on regulation. 

Topics covered include:
- How is technology reshaping professional services firms? From AI-powered research and disclosure tools to virtual client engagement, technology is now embedded in every aspect of firm strategy and operations.
 
- What are the implications for structure, pricing, and regulation? AI is driving a shift away from traditional leverage models, elevating the role of technologists and challenging the billable hour. Value-based pricing is gaining ground and firms must rethink how they assess and compensate their partners.
 
- What regulatory and ethical risks must firms manage? Competence, confidentiality, and supervision remain central. Firms must develop clear AI policies, invest in training and maintain strong oversight - particularly as regulatory scrutiny increases.
 
- What practical steps should firms take now? Define your AI business case, benchmark tools, train your teams, and document compliance. The next generation of lawyers is already embracing AI - leaders must act now to stay ahead.

This summary was drafted using Microsoft Copilot, as part of our ongoing exploration of how AI can support and enhance professional services.
 
If you would like to discuss any aspect of AI in relation to your firm, or if you have any specific questions arising from this discussion, please contact Partner and non-contentious partnership specialist Corinne Staves, or Partner and leading regulatory law specialist Nick Leale.

For example, CM Murray LLP can assist firms with reviewing their HR, risk management and other policies and/or their terms of business, on changes to governance and compensation systems for partners as a result of the increased adoption of technology and the regulatory implications of the use AI and technology in client service.

Professional Services in the Age of AI: Regulation, Strategy, and Real-World Impact Professional Practices Alliance (PPA) Webinar Recording

Welcome to the CM Murray LLP podcast channel where we discuss a wide range of topical issues in relation to partnership and employment law.

CM Murray LLP is a leading partnership, employment and regulatory law firm based in London. 

We advise US and UK law firms and partners, hedge fund and investment management partners, US and other multi-national employers, senior executives and founders on a range of UK partnership and employment law issues.