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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
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
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
Finding Buyers for Your Law Practice
November 11th, 2019
There are a variety of ways to find buyers. Some attorneys try to do it on their own. From a DIY perspective, usually the best ways to get the word out that you’re looking for a buyer are through networking and advertising. Others who don’t want to take the time and effort to find buyers on their own rely on consultants and brokers. Besides saving time, using outside experts provides other advantages from the DIY method. They include: ... Read More
Categories: Selling a Law Practice
Including Office Space as Part of a Law Firm Sale
August 6th, 2019
Small-firm owners and solo practitioners looking to sell their law firms frequently believe that their particular office space—whether owned or leased—significantly enhances the value of their practice. They usually base this belief on the office’s superior location or their upscale furnishings and design. ... Read More
Categories: Selling a Law Practice
What Happens to Your Website if You Sell Your Practice?
October 8th, 2018
If your firm is like many solo and small law firms, a significant portion of your firm’s value derives from the amount of business your website generates. When selling a law firm—be it an actual sale or a transition to another firm as “of counsel”—it is therefore critical that the buying firm retains the benefit of the seller’s previous website traffic. ... Read More
Categories: Selling a Law Practice
Closing vs. Selling a Law Practice: Why Not Get Money for Your Efforts?
April 4th, 2018
Are you a solo lawyer or small-firm owner facing retirement? Then, like most Boomer lawyers out there, you’re contemplating the option of selling your law practice. ... Read More
Categories: Selling a Law Practice