Selling a Personal Injury Law Firm

For personal injury law firm owners thinking about leaving practice, there’s good news and bad news regarding selling a personal injury law firm. Personal Injury Firms First, the good news. Unlike most practices, personal injury practices have a real monetary value and a relatively easy manner to determine that value, even if the owner decides to shut the firm down. At times, this value can be significant and easy to monetize. ... Read More

How Do My Earnings Compare to Other Lawyers?

Lawyers, by their very nature, are competitive. So, it should come as no surprise that for many lawyers, “winning” means making more money than other lawyers. If you’re in Big Law, it’s not very difficult to get a good idea whether you are “winning.” Associate salaries are widely publicized, and to a lesser extent, so is partner compensation. Indeed, a lot of the jumping around one sees in Big Law, is driven by the knowledge that, at least when it comes to compensation, you know whether the grass is greener on the other side of the fence. ... Read More

Deal Structure for Law Firm Sales

What are the mechanics of buying and selling a law firm? First, let’s go back to law school for a moment. For those of you who have never done transactional work during your career, law firm buyers purchase the firm’s equity or assets. In the former situation, the entity remains in place. In asset deals, buyers acquire assets that are then placed in the buyer’s existing entity.

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Dementia and Aging Boomer Lawyers

The number of attorneys practicing after reaching the age of 65 has grown by more than 50% in the past decade. Roughly 15% of all practicing lawyers are 65 or older. As a group, we also seem to work longer than others. Only 7% of the general workforce stays employed beyond 65.

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Associate Buyouts - Better Than You Think

Many small firm owners wrongly assume that finding a third-party buyer hoping for a more lucrative deal is preferable to making an internal deal with an associate. At times, that is true, but more often than not, it is not. Owners should be more receptive to the exit strategy of selling to associates. Let’s first debunk some assumptions owners make when comparing the two options. ... Read More

The Three “Do Nots” of Law Firm Buyers

I’ve written before about how buying a law firm can be a very effective, low-risk, and low-cost means to grow a practice. That said, what is it about the legal profession that, on occasion, makes it more challenging to sell a practice than hoped? As a consultant and coach, I’ve worked with hundreds of lawyers of all shapes and sizes in virtually every state and practice area. From that experience, I’ve become somewhat of an expert in understanding the DNA of those in our profession. Here are three fundamental truths in the DNA that impact buyer behavior. I call them the “do-nots.” ... Read More

The Contingent Exit Strategy

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 Selling A Law Firm Was Unethical

For years, selling a law practice was prohibited because ethics regulators believed clients, files, and a firm’s goodwill were not something that could be sold. Regulators feared that clients would be treated like merchandise. Other ethics worries included the possibility of sharing fees with a non-lawyer (spouse of a deceased lawyer) and the ban on payments to anyone for recommending the lawyer’s services. ... Read More

Have You Prioritized Your Exit Strategy Goals?

Lawyers are typically not a reflective lot. We rarely spend time taking a step back to ask, “What am I trying to accomplish here?” Instead, most lawyers just “shoot and then ask questions.” This dynamic is present at the time of retirement when determining an exit strategy. And even when the timing of the exit is carefully thought out, the goals are often not. ... Read More

Take the Money and Run? Factors to Consider Before Accepting a Big Law Job Offer

Even casual observers of the goings-on in Big Law know the Great Resignation, as with the rest of America, has not spared the legal profession. That fact, combined with the surprising and continuing high demand for Big Law services, means that you couldn’t ask for a better job market if you are an associate seeking greener pastures. Here are a few tips when considering a Big Law job offer that seems too good to be true. ... Read More