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So, What’s My Law Firm Worth?
December 1st, 2021
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. ... Read More
Buying a Firm That’s Dependent on Marketing & Advertising Dollars
October 5th, 2021
When purchasing a law practice, buyers seek revenue they ordinarily could not obtain on their own. For example, buyers hope that, with the proper introductions, the relationships that a seller has with repeat clients can be successfully transitioned to the buyer. The same can be said for a seller’s referral network, be they former clients or other professionals. ... Read More
Categories: Selling a Law Practice
Pricing a Law Firm When Selling to an Insider
August 2nd, 2021
I always tell clients that my appraisal provides an excellent starting point for negotiating the price of a law firm with an insider, but that it is unlikely that it will be the final word. While it may sound like a cliché, for most small firm insider deals, parties ultimately agree on a price that seems “fair.” ... Read More
Categories: Selling a Law Practice
Appraising a Law Practice in Different Settings
June 2nd, 2021
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.
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Buying a Law Practice: Not as Risky or Complicated as You Think
April 2nd, 2021
Purchasing another lawyer’s practice is fast becoming a popular and more common way to grow or diversify one’s law firm. There are three main reasons for this: ... Read More
Categories: Selling a Law Practice
Working Part-Time Before Retiring From Your Law Practice
March 11th, 2021
For reasons that escape me, many people in the legal profession believe the practice of law is not amenable to working part-time. While this issue usually arises for new parents, part-time work is also a great option for senior solo and small law firm attorneys to consider before they completely exit the profession. Read More Read More
Categories: Attorney Retirement
Paying a Premium for a “System”
February 1st, 2021
Appraising a law firm requires assessing numerous factors. During the appraisal process, some attorneys will say to me something along the lines of, “In my law firm, I’ve got this great system that can…. That alone should be worth…” The marketplace for law firms doesn’t work like that, however. Here’s why. ... Read More
Categories: Selling a Law Practice
Assessing a Law Firm’s Revenue: All Is Not Created Equally
November 2nd, 2020
One of my truisms for valuing a law practice is that “all revenue is not created equally.” For example, revenue that stems from past clients or one’s referral network is far more valuable than the revenue generated from seminars or webinars. ... Read More
Categories: Selling a Law Practice
Reassessing When to Retire During a Pandemic
September 8th, 2020
Deciding when to retire, now more than ever, has become a moving target. In the best of times, it’s never a simple decision. Lots of variables to consider and assumptions to make. But with Covid-19, past careful thinking for many has been thrown to the wayside. Pundits galore have been making predictions about Covid-19’s impact on retirement. Here’s one more. ... Read More
Categories: Attorney Retirement
What Can Law Firm Sellers Ethically Do During a Transition?
July 13th, 2020
Rule 1.17 of the Model Rules of Professional Conduct states that after a sale, sellers must “cease to engage in the private practice of law.” Does that mean you must hand over the keys, walk out the door, and immediately ride off into retirement sunset? And if the answer is yes, how is that realistically possible? ... Read More
Categories: Selling a Law Practice