Recently, I had a meeting with an attorney who had a great litigation practice. Over the last 30 plus years, he had worked hard, done the right things and built a great practice with strong client revenues. However, the attorney had received some news based regarding his health that had him working quickly to consider the sale of his law practice as he was going to be out for some time due to medical treatments. The attorney was hoping he could find a buyer so he could cash out of his practice, but he needed one fast.
The problem I discussed with him that day was that the value of his practice will greatly diminish if we remove his willingness or ability to provide transition time to a buyer, as well as just simple help and assistance in dealing with clients, information and process items post-closing. What could have been a significant number a couple of years ago would probably be far less when considering today’s current situation.
So, we laid out the options for this attorney:
– Keep the practice throughout his medical care
– Prepare for his absence with the plan to return thereafter
– Consider selling now with a drastic decrease in sales price.
Not great choices for an already tough situation.
This situation isn’t an isolated one. Many attorneys contact us when it is too late or they haven’t taken the steps necessary to plan for their exit when they needed to do so. If you are considering selling your law practice soon, it is not only important to continue to do good work for your clients, but it is just as important to make sure you take the right steps to prepare for your exit and to start that process today.