Where to start? If you are considering buying an existing law practice or buying out a retiring partner in your own practice, here are some key items to consider:
1. Make sure the practice is the right fit for you – Not just the practice areas, geographic location and financial needs, but review and consider:
-Are the clients going to be comfortable with you and are you comfortable with the clients?
-Are the revenues sustainable for how you would run the practice?
-Are you going to be happy coming into the office each day?
-What changes are required of the practice model, facility, and staff? Are you up for making those changes?
2. Do the financials work? – Have you had the practice valued by a qualified individual to make sure the cash flows and practice characteristics justify the purchase price?
3. Are you being objective? – Keep focused on getting the deal that you want on the right practice for you. Maintain your professionalism and be ready if one or more of the potential purchases do not work out at first. Competing purchasers or due diligence items may work to terminate a deal and keeping emotion out of it will help you regroup and move onto the next practice that’s right for you.
4. Get help! – You are an expert in your field. Now it is time to swallow your pride and get experts in the practice acquisition field. A law practice broker, a law focused CPA and yes, even an attorney, are all needed to advise you and make sure things proceed as needed.
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.