Selling v. Closing a Practice

Selling v. Closing a Practice

No matter who you are, the type of practice you run, or the size of practice you own, you cannot hide from one fact: retirement time will come. If you’re a boomer lawyer, chances are you’re already considering your options for exiting practice: closing up shop or selling your law practice. Although it might sound simpler to just shut down and walk away, there are some things to consider first.

The Law Firm Selling & Closing Process

Neither selling nor closing your law practice is easy. In fact, both processes require most of the same steps such as:

  • Notifying your clients of your decision
  • Transferring active files to other counsel
  • Taking care of old files by storing, returning or destroying them
  • Closing out client trust accounts, vendor contracts and equipment leases
  • Considering malpractice coverage
  • Disposing of assets such as furniture and office equipment

The Benefits of Selling Your Law Practice

After you retire, your clients will still hope to receive the same level of quality service they experienced with you. Selling your law practice to a trusted successor guarantees that each client is well taken care of.

Selling your practice will also help you regain the years of hard work and sweat equity you’ve invested while building your successful practice. You’ll enhance your financial security, so you can enjoy your retirement. You shouldn’t leave hard-earned cash on the table when retirement is right around the corner.

Not All Practices Benefit From the Same Exit Strategy

What’s best for another practice may not be best for you. Even if you choose to sell, there are several options such as having an associate buy you out or selling to a third party. You may also benefit from going of-counsel or simply downsizing your practice to prepare for your exit. It’s important to receive the guidance of an experienced professional to help you choose the best path for you.

Retirement Near? You Need an Exit Strategy.

It’s critical that you make the decision to sell or close your practice before you choose to retire or exit. You need a succession plan to help prepare yourself, your practice, your clients and your family for what’s to come.

To implement the best exit strategy, reach out to a professional who works with lawyers nationwide. To learn more, call Roy at 612-812-4500 or send a message.

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