That analysis is especially important in today’s evolving legal environment. A firm’s response to economic disruption, remote and hybrid work, talent retention, and technological change offers insight into its leadership and resilience. The rapid adoption of artificial intelligence raises additional questions: Does the firm have a thoughtful AI policy? Are lawyers and staff being trained and supported? Is technology being used strategically to improve client service and efficiency? How might these developments affect staffing, recruiting, and the future practice of law?
Yet many lateral candidates ask few, if any, questions about a prospective firm’s finances, management, compensation structure, or partnership expectations. That’s surprising. Sophisticated business lawyers would rarely advise a client to enter a significant business relationship without appropriate diligence. The same standard should apply to a major professional and financial transition.
Perhaps lawyers who have spent years at one firm assume that most firms operate similarly. From a distance, firms may appear much the same: talented lawyers, sophisticated clients, and strong reputations. In practice, however, they can differ dramatically in compensation, governance, management philosophy, client development, technology, and investment. Those differences shape a partner’s incentives, opportunities, and ability to grow a practice.
Gathering Information
The best way to obtain this information is the same way firms obtain information from candidates: ask.
Given that firms require candidates to complete an LPQ, senior lawyers considering a move should consider requesting comparable information through a “Lateral Firm Questionnaire” (“LFQ”). The LFQ is a checklist of issues to explore before making one of the most significant professional decisions of a career.
It addresses traditional financial diligence as well as factors increasingly important to a successful lateral move, including:
- Firm financial health and stability
- Compensation philosophy and partnership economics
- Client portability and business development support
- Practice group strategy and growth opportunities
- Firm governance and leadership
- Lateral integration and retention history
- Succession planning and talent development
- Cybersecurity and risk management
- Technology infrastructure, innovation, and AI strategy
- Hybrid work policies and workplace strategy
- Firm culture and partner satisfaction
Caveat #1: Who Should Use the LFQ?
The LFQ is designed primarily for senior lawyers whose compensation and professional opportunities depend not only on individual performance, but also on the firm’s overall performance and direction.
A senior lateral partner should understand the firm’s financial health, its performance through periods of disruption, its track record with lateral partners, and its approach to integration and retention. The candidate should also assess whether the firm’s billing practices, business development resources, technology, leadership, and strategic priorities support the partner’s practice and long-term goals.
Caveat #2: Timing Is Everything
A relationship can be discouraged by asking highly probing questions before mutual interest develops, so timing matters.
The candidate and prospective firm should first establish genuine interest in exploring a combination. Once the firm provides its LPQ to the candidate, however, requesting comparable information from the firm is entirely appropriate. This symmetry reflects the reality that both sides are conducting diligence.
The LFQ need not be a rigid demand for written answers to every question. It’s a practical checklist to guide the process and identify issues requiring further inquiry. Financial summaries, anonymized data, conversations with firm leadership, and proposed contractual terms may be more appropriate than formal written disclosures, depending on the circumstances.
Caveat #3: How to Ask
Candidates should approach the process as an effort to understand the firm, not to challenge it or signal distrust. Thoughtful questions demonstrate sophistication, judgment, and a serious commitment to making the right decision.
A firm’s reaction can itself be revealing. Leadership that values sound decision-making should understand why a senior lawyer wants to evaluate the firm’s platform, economics, culture, and strategic direction before making a significant career move. Indeed, some firms may view a candidate’s failure to ask such questions as a concern. A senior lawyer who neglects appropriate diligence may not be approaching the decision with the care expected of a partner.
It’s important to note that the LFQ is just a starting point, not a substitute for independent diligence or advice from legal, tax, financial, or other professional advisors. Candidates should use it to identify issues warranting further investigation and tailor their inquiries to the significance of the move and the circumstances involved. Material questions should be pursued as the process progresses, and important commitments concerning compensation, staffing, guarantees, or other material terms should be documented in appropriate written agreements.
The LFQ’s goal is simple: to help lateral partner candidates make informed career decisions and ensure that both the candidate and the firm enter the relationship with realistic expectations and a shared understanding of what will make the partnership successful.
Click here for our Sample LFQ.
