Last month, I went out to dinner with some friends. One friend announced to the group that, after working for a large telecommunications company for more than 25 years, he was being offered an opportunity to retire early with some very nice incentives. He further informed us that he had intended to retire within the next year. So, the offer was not going to change his planned retirement date in any significant manner. ... Read More

If you’re like most lawyers, you didn’t go to law school because you loved spreadsheets and financial reports. For most small firm owners, financial reporting receives only the level of attention needed to keep the firm operating. But when the time comes to sell the practice, clear financial records suddenly become very important. Financial clarity can be the difference between a smooth, professional transaction and a serious buyer losing interest. If your books are clean, consistent, and understandable, you strengthen your negotiating position. If they are messy or unclear, the purchase of even a strong practice can appear risky for a potential buyer to undertake. ... Read More

I recently wrote about how private equity is in the very early stages of exploring the law firm marketplace to disrupt it and, of course, make money. Here’s what these investors will find when they begin their journey to acquire law firms. Simply put, they have their work cut out for them. The law firm marketplace is immature, underdeveloped, and difficult to navigate. ... Read More

After over 15 years advising retiring lawyers, one reality stands out: selling a law firm is far less universal than many believe. A sale assumes transferable client relationships, a willing, capable successor, and a business that can operate independently of the current owner. In smaller firms, those conditions are not always present. ... Read More

I recently worked with two elder solo attorneys in excellent health. They wanted to work 2-3 more years at almost a full-time pace. However, they were old enough and wise enough to know that a sudden health issue could derail all of that if they didn’t make a plan soon. I’ve written before about the risks of dying at your desk. Suffice it to say that if that occurs, you leave a mess for clients, staff, and especially grieving spouses and children. Further, selling a practice is way more difficult without the owner around. And even if it can be done, it is usually at fire sale terms. ... Read More

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. ... Read More

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. ... Read More

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. ... Read More