Why Selling Your Law Practice May Be The Key To A Successful Succession Plan
An attorney unexpectedly passed away at an early age. What’s next? What happens to his or her law practice? Now that the income from being an attorney is gone, are there funds for the attorney’s family to support them? What frantic moves will the surviving spouse have to make to ensure someone can take over the practice?
This is a real-life example. Most people don’t consider anything happening to them until later in life when all is winding down and things are going just as they should. Life doesn’t play the game that way. It will throw things at you that weren’t part of your plan and could mean disaster for you and your family if you haven’t taken contingencies into account as part of disaster and succession planning for you and your law practice.
If the practice owner dies, becomes disabled, or becomes incapacitated, has the next generation of attorneys in the firm been groomed and can they take over? No other attorneys in the firm- now what? Would the law practice survive if the next generation at the firm isn’t ready or in existence? The answer is typically no. However, if this next generation of owners isn’t an option for you then now may be the time to consider selling your law practice.
‘Selling’ takes all different forms and there are various structure options for you to consider and determine which works best for you. However, if you don’t have a backup plan available to you and one of those ‘what-if’ events happens tomorrow, now is the time to consider your best options in such event and how they can help maximize value and minimize disruption to your practice.
The Law Practice Exchange aims to curb the lack of knowledge in the profession on law practice transitions by educating and advising attorneys on the number of different options available in the legal marketplace and also serving as a confidential broker and advisor to seek and provide connections for those right opportunities between an exiting attorney and a growth-focused attorney or firm. Find out more at www.TheLawPracticeExchange.com. © 2015 The Law Practice Exchange, LLC. Reproduction in whole or in part is strictly prohibited.
The information and advice provided in this publication is general guidance and is not necessarily specific to your individual situation, objectives or other needs. Make sure you seek a qualified expert opinion before proceeding with your transition objectives.