Essential Due Diligence Questions for Lateral Partner Moves

Dear Jonathan D.,

Financial Structure and Partnership Economics

Consider focusing first on understanding exactly how the firm makes money and where you'd fit in that equation. Ask for specifics about the compensation structure—not just your starting salary, but how bonuses are calculated, what the partnership track looks like financially, and whether there are multiple tiers of partnership.

Don't just accept vague promises about "partnership consideration in 2-3 years." Get concrete details about what that timeline actually looks like, what metrics they use for evaluation, and how recent lateral hires have performed in partnership decisions. Some firms may be eager to recruit but have internal cultures that can make it challenging for laterals to achieve equity partnership.

The partner book calculator can help you understand what kind of portable business you'll eventually need to bring in, which leads to the next critical area.

Book of Business Expectations

This is where many lateral partners get blindsided. Ask explicitly about business development expectations—both immediate and long-term. Some firms expect laterals to bring portable business from day one, while others provide a runway period to develop relationships.

Get clarity on what "business development support" actually means. Will you have dedicated marketing resources? What's the firm's approach to client conflicts, and how might that impact your ability to pursue certain opportunities? Understanding these dynamics upfront can prevent major disappointments down the road.

Practice Group Dynamics and Growth Strategy

The health of your specific practice group matters enormously. Ask about recent departures—not just who left, but why. Look at the age demographics of the partnership. If you're joining a practice group with partners all nearing retirement, that could be either a great opportunity or a sign that the group is in decline.

Understand the firm's investment in your practice area. Are they actively growing the group? Do they see it as a strategic priority, or are you joining something they're trying to maintain rather than expand? The firm's overall trajectory matters, but your practice group's specific situation will determine your day-to-day reality.

Cultural Fit and Integration

Important areas to explore regarding firm culture include: How do they handle integration of lateral partners? Ask to speak with other recent lateral hires—ideally people who joined 1-2 years ago and can give you honest feedback about the transition process.

Pay attention to how the firm talks about work-life balance and client service. These conversations often reveal underlying expectations about hours, availability, and what "client service excellence" means in practice. If you're moving from a smaller firm environment, the cultural adjustment to a larger platform can be significant.

Geographic and Market Considerations

Given your Chicago base, consider how the firm's market position might affect your practice. The legal market has become increasingly competitive for lateral talent, which means you have leverage—but also means firms are being more selective about long-term investment in new partners.

If you're looking at firms in growing markets, understand their expansion strategy. Are they building sustainable practices, or are they growing quickly without the infrastructure to support it? The difference will impact everything from administrative support to business development resources.

Making the Final Decision

Before deciding, consider requesting a trial period or project-based engagement if possible. Some firms are open to arrangements where you can work on matters before fully committing to a lateral move. This gives both sides a chance to evaluate fit.

Also, don't underestimate the importance of checking current bar reciprocity requirements if you're considering moves to different jurisdictions, as these rules can change. The bar reciprocity tool can help you understand any additional licensing requirements that might impact your timeline.

Remember, the firms pursuing you are doing so because they see value in what you bring. That means you have the right to ask detailed questions and expect thorough answers. Any firm that's evasive about these fundamental issues is probably not the right long-term fit.