When deciding whether to purchase a law practice, either for you as an individual or for your firm, always ask the question, “Is this part of the strategic plan?” A strategic acquisition always makes sense if it fits with your professional career plans or your firm’s core values. It may always seem that an acquisition fits with the strategic plan since it is growth of revenues motivated as a key reason, but that is not really the case. A strategic acquisition is one that accomplishes a goal and would be the right fit in a step of your already existing detailed plan.
Always ask these questions to determine whether a law practice acquisition is strategic or if you are just trying to make it seem that way:
- Will the acquisition help me grow as an attorney or a firm in the practice area(s) desired or geographic communities desired? Acquiring in the desired practice area(s) or geographically desired areas makes an acquisition an easy decision.
- Will the acquisition help me gain new capabilities or services? If you are able to acquire true talent in employees, systems and brand, then this option probably makes sense.
- Will the acquisition improve my margins and services to clients? If the additional costs and burdens to keep up with and manage additional legal work are too great than it may not be the right time or right opportunity.
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.