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When small firm owners fail to secure a successful exit, it’s rarely a market issue. More often than not, they get in their own way long before the market ever enters the picture. I’ve spent over fifteen years having conversations with lawyers considering retirement, and I’ve noticed a clear pattern. When those conversations don’t progress, it’s rarely because the attorney decided to work with someone else. It’s usually because the lawyer isn’t ready to confront the decisions in front of them. This post will explore some of the most common ways lawyers unintentionally undermine their own exit from practice. 
Whether a lawyer works in a firm or as a solo, he or she does not close up shop one day and ride off into the retirement sunset the next. Many lawyers gradually wind down their practices—over months or years—and transition to part-time before retiring completely. Historically, law firms use the “of counsel” designation for lawyers nearing retirement. 
Most retiring lawyers assume the most challenging part of selling their firm will be finding the right buyer or negotiating the best deal. In truth, it is the emotional side of the transition that surprises them the most. 
It should come as no surprise that the question most prospective clients ask me is, “What is my law firm worth?” My response is always as follows: Imagine it’s Friday afternoon and you ride off into the retirement sunset never to return to the practice of law. Then, on Monday morning, the phone rings at your old desk, and your successor answers. 
Wall Street is beginning to scratch the surface of the unique investing opportunities in the legal profession. You may be thinking, “Didn’t those same folks disrupt the medical, dental, and accounting professions?” Yes, they did, and our profession is their next target. 
If you are considering selling your law firm, you have two basic options. They are: Have an existing associate or associates (if you have associates) buy you out, or Transition to a third party (sell to or go “of counsel” with another firm). Let’s take a look at the considerations for each. 
Building your firm was hard. Deciding it was time to retire was likely harder. But telling your staff you are moving on? For small firm owners, that might be the hardest task of all. 
What if the future owner of your law firm isn’t another lawyer? Not long ago, that idea would have seemed preposterous. But the times today are a-changing. In a post earlier this year, I discussed the emerging trend of lawyers assuming investor roles, rather than practicing law, within law firms. And now, there’s another trend on the horizon: Management Services Organizations, or MSOs. This business model has already disrupted other professions such as dental, medicine, and accounting. Some of you reading this are now the targets of these investor-lawyers. 
Law practices are often valued in divorce proceedings. As such, lawyers frequently assume that it should be relatively easy to apply similar valuation principles when trying to sell a practice. Nothing can be further from the truth.
Each year, Clio’s Legal Trends Report offers a snapshot of where the legal industry is—and where it’s going. The 2025 edition highlights how firms are adapting to new technology, shifting client expectations, and evolving workforce dynamics. 
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