Navigating a Lateral Move for Partners: The Basics
- Oakstreet Attorney Search
- 31 minutes ago
- 4 min read
Lateral partner moves involve important considerations, including compensation structure, rate alignment, conflicts, partnership agreement limitations and offer negotiation. At Oakstreet Attorney Search, we guide partners through this process every day. This overview outlines the key steps and what to expect when exploring a lateral move.
What materials do I need to prepare for a partner-level search?
Typical materials for a lateral partner move include past productivity reports showing originations, billable hours, and collections. A business plan isn’t always required, but it can be helpful for describing your strategic plan for practice growth, key client relationships, and cross-selling opportunities.
Partners should also review their current partnership agreement to identify any potential roadblocks or exit restrictions such as notice periods, forfeitures, or clawbacks.
How long does the partner lateral process typically take?
The timeline varies, but our average partner-level lateral processes take two to six months from initial conversations to the offer stage.
Group moves or multi-office involvement can extend the timeline. Many partners also plan their transitions around key distribution dates or compensation cycles.
What role does a recruiter play in a partner-level move?
A recruiter’s role is to provide market guidance throughout the lateral process, including identifying prospect firms, advising on strategy, and assisting with offer negotiations. A good recruiter ensures that the process stays efficient and confidential.
Typical activities include:
Identifying and contacting target firms
Managing confidentiality
Advising on LPQ preparation
Coordinating and scheduling meetings
Navigating compensation and offer discussions
Our goal is to streamline the process so you can stay focused on your practice.
What steps are involved in the lateral partner process?
Once we understand a lateral partner’s practice and have identified target firms, the process typically involves the following steps:
Firm review: Target firms evaluate an overview partner’s practice, portable business, and client mix to assess alignment with their strategic objectives.
Initial meetings: Early discussions usually involve practice group leaders and/or key partners to determine whether there is mutual interest and alignment.
LPQ and detailed diligence: If conversations progress, the firm will request a detailed Lateral Partner Questionnaire covering historical performance, client relationships, rate structures, compensation objectives, and business projections.
Conflicts and deeper diligence: As firms move toward an offer, they will conduct conflicts checks and further due diligence on the partner’s portable business.
Offer and timing: The final step is negotiating the offer and setting a start date.
Every firm’s process varies slightly, but this general framework is a reliable starting point. Evaluating important items early in the process can save everyone time – e.g., billable rate structures, potential conflicts with key clients, compensation goals, etc.
Do I need a portable book of business—and how much?
Most firms expect some level of portable business from lateral partner candidates, though the amount varies widely based on firm size, profitability, rate structure, and strategic priorities.
That said, there are exceptions. Some firms hire service partners with limited portable business if they possess a highly desirable skill set, have strong institutional client experience, or fill a critical need within a practice group. Examples include Tax and ERISA specialists.
What is a Lateral Partner Questionnaire (LPQ) and what information is included?
An LPQ is the core diligence document used by law firms to evaluate a partner candidate. While each firm uses its own version, LPQs typically request:
Billing rates and historical realizations
Originations
Collections and worked hours
Key clients
Projected portable business
Cross-selling opportunities
LPQs can be one of the more time-consuming parts of the process, and having guidance on completing them correctly helps avoid delays.
What compensation information will firms want?
Most firms will request current and past compensation information, including compensation summaries from the last 2–3 years. Firms will also want to understand how origination credits are allocated within your current firm and how partner compensation is structured. During later diligence stages, they may request prior years’ K-1s.
How is my portable business evaluated by prospective firms?
Past originations matter, but firms look beyond the numbers. They assess:
The strength and durability of client relationships
Concentration risk (reliance on one or two major clients)
Billing rate compatibility
How your practice aligns with the firm’s existing client base
Past success the firm has had with similar lateral hires
Every firm has its own view of what is truly “portable,” and a recruiter can help present portability in the strongest way possible, along with anticipating likely questions.
What should I expect from the conflicts process?
Potential conflicts should be identified as early in the process as possible, especially if there are key clients you expect to transition. Addressing possible conflicts upfront saves time and helps prevent delays later in the process.
What are the key items to evaluate at the offer stage?
Key considerations include:
Compensation structure and calculation of originations
Length and terms of any compensation guarantees
Partnership agreement terms (capital contributions, buy-ins, etc.)
Voting and management structure
Integration support and expectations
Many of these terms are negotiable, depending on the strength of your practice and the firm’s strategic needs.
What happens after an offer is extended?
Once an offer is made, partners have the opportunity to negotiate terms, confirm expectations, and finalize timing.
Additional considerations include client transition plans, final conflicts clearance, public announcement coordination, and onboarding logistics.
A smooth transition process helps ensure minimal interruption to client service.
If you're a partner considering a lateral move, Oakstreet Attorney Search provides confidential guidance at every stage. Contact us to evaluate your practice and explore strategic opportunities.
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