By Jim Knott, Founder

A partner's book of business is the work credited to them. Portable business is the part of it that would move with the partner to a new firm. The two are rarely the same size, and the difference decides whether a lateral partner hire pays off.

Signs the business is portable

  • The client chose the lawyer. The client came to the partner personally, or followed the partner from an earlier move.
  • Several contacts know the partner. The relationship is not with one in-house lawyer who might leave.
  • The work recurs. The client sends new matters regularly, not only a single large engagement.
  • The partner does the work or directs it. The client sees the partner as the reason for the result.
  • The client's decision is the partner's to influence. The partner is close to whoever chooses outside counsel.

Signs the business may not be portable

  • The client is institutional. The relationship belongs to the firm, a firm-wide panel, or a senior partner who is not moving.
  • The origination was inherited or shared. Credit on paper may not reflect who holds the relationship.
  • The work depends on the firm. It needs a capability, an office, or a brand the new firm does not have.
  • The client has restrictions. Outside counsel guidelines or panel arrangements may limit a move.
  • The work is one-off. A large matter that has ended is not a relationship.

Questions to ask

  • Who originated each of the main relationships, and when?
  • Who is the client contact for billing, and who is the contact for strategy?
  • Who else at the current firm works with each client?
  • Which clients have moved with the partner before?
  • Are there engagement terms or guidelines that limit a transfer?
  • What would the partner do if a client chose to stay?

The answers matter less than their consistency. A partner who can describe each relationship specifically, and whose account does not change between conversations, is giving you something you can rely on.

Conflicts and the questionnaire

Portable business also has to clear conflicts. Most firms use a lateral partner questionnaire to collect clients, matters, origination, and billings, and their conflicts team checks it before an offer. ABA Model Rule 1.6(b)(7) permits limited disclosure to detect and resolve conflicts when a lawyer changes firms, so long as the disclosure does not compromise privilege or prejudice the client. State rules vary, and the partner should confirm what applies with their own ethics counsel.

Structure the offer around the uncertainty

No one knows exactly how much business will move. Offers at partner level often reflect that, with a draw or guaranteed compensation for an initial period, then pay tied to collections or origination. Both sides should agree in writing what happens if business arrives more slowly than planned.

How Bound handles it

Bound does not verify a book. The hiring firm does. Bound prepares the partner to discuss portable business accurately, and will tell a partner plainly if the numbers do not support the search. The full approach is on the lateral partner page.