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It should come as no surprise that many of today’s successful small to medium-size law firm founders are Boomers who are retiring in unprecedented numbers. These leaders hope to cash out and enhance their retirement nest eggs through either buyout payments from younger partners, or contractual post-retirement formulaic obligations that resemble pension payouts.

When it comes to the future of their law firms, solo practitioners and small law firm owners frequently delay or entirely avoid doing what is necessary for succession planning. Numbers don’t lie. Thomson Reuters’ State of U.S. Small Law Firms reports that succession planning is a focus for less than a quarter of law firms. I would also strongly suspect that even if 25% say they are “focusing” on succession planning, I’d be shocked if more than 10% were doing anything about it. Procrastinating on succession planning can lead to significant complications, including financial loss, client and staff confusion, and emotional distress for loved ones. Let’s explore some of the reasons why lawyers procrastinate. After that, I will discu…

Many attorneys overlook the impact their office lease can have on retirement because they are so focused on the demands of running their practice. When your lease expiration date drives your retirement date, you increase the risk of facing two undesirable outcomes.

CPAs, appraisers, and other business evaluators use various valuation methods to value law firms. To be quite frank, none should be relied upon as a valuation technique for legal practices. In this post, I’ll break down the common valuation methods. I’ll briefly explain how each method works and how it falls short in measuring the value of a law firm.

The most common exit strategies for retiring solo practitioners and small law firm owners typically include recruiting a successor, merging with another law firm, selling the practice, or shutting it down. However, one strategy is often overlooked, though it may make the most sense regarding finances and personal well-being. That strategy is downsizing.

You own a small law firm. For the first time, you want to make one of your associates a partial owner. But how do you determine the price of admission for the “buy-in?”

Succession planning is a demanding journey with many unknowns. As the spouse, you're more than just a passenger—you're the co-pilot. Whether you are a co-owner at the firm, an employee, or simply a curious and supportive partner, your involvement in succession planning is crucial. As a spouse, you bring a unique perspective to the process, whether or not you work at the firm. With that support, a few well-placed nudges, and the occasional "I told you so" (play this latter card VERY carefully), you can help guide your law firm owner spouse make a smooth transition out of the legal profession.

For solo practitioners and small law firm owners seeking retirement, here is a quick, down-and-dirty summary of the succession plan strategies available to you. Put another way, here are three structural ways that soon-to-be retired lawyers can “sell” their practices.