The American legal industry is growing. Earlier this year, Bloomberg Law reported that robust hiring and practice growth is expected for law firms in 2023. Given the economic environment that we are in, it might be a good time for plaintiffs’ lawyers who are thinking about transitioning to sell their legal practice. Are you thinking about selling your law firm? There are many different considerations that you need to keep in mind.
The experienced legal team at The Law Practice Exchange, LLC, discusses why it may be appropriate to sell your firm. Here are three key reasons why you may want to consider starting the process of selling your law practice today.
Reason #1 to Consider a Law Firm Sale: You are Ready to Retire
It is not uncommon for lawyers to work well past the traditional age of retirement. For attorneys who own their own practice, retiring can actually be challenging. Selling a firm may be the best way to move into retirement. If you find yourself ready to step away from the daily operations and responsibilities of managing a law firm, selling your plaintiffs’ law firm can provide you with the financial security and peace of mind you desire in retirement. By selling your law firm, you can transfer the ownership and responsibility to someone else, allowing you to embark on a new chapter in your life while ensuring that the legacy of your firm continues in capable hands. You can also get the most out of the business that you invested so much into building.
Reason #2 to Consider a Law Firm Sale: You are Considering a Career Change
Of course, retirement is not the only reason that practice owners opt to leave their firms. As a plaintiffs’ lawyer who owns your own firm, you may be ready for a career change—either inside or outside of the legal industry. Perhaps you have developed new interests, want to pursue a different area of law, or explore non-legal ventures altogether. In such cases, selling your plaintiffs’ law firm can provide you with the financial resources and freedom to pursue your new career path.
Selling your plaintiffs’ law firm for a top price can offer you a financial cushion—thereby allowing you to invest in education, training, or other ventures to ensure a successful transition.
Reason #3 to Consider a Law Firm Sale: The Market is Hot (You May Get a Good Price)
There are also some commercial reasons to consider selling your law firm now as opposed to several years down the road. Timing is crucial when it comes to selling any business, including for plaintiffs’ law firms. Currently, the market for law firm acquisitions is favorable. Indeed, many buyers are actively seeking established practices—either to add to their own existing practice or to take over and run. The high demand can translate into a good price for your plaintiffs’ law firm. A hot market means there is a higher likelihood of attracting multiple interested buyers, potentially resulting in competitive bidding. This can drive up the sale price and give you a better return on your investment. Taking advantage of the market conditions is always a good option.
Selling a Plaintiffs’ Law Practice is Complicated: You Need the Right Support
Selling a law practice can be complicated, especially for plaintiffs’ lawyers. You do not have to navigate the entire transaction—from the finding of buyers to the finalization of the sale—alone. The right support can make a difference. Here are two key points to remember:
- Ethical Considerations: Selling a law firm carries additional duties compared to other business sales. As explained by the American Bar Association (ABA), attorneys must consider ethical considerations when selling their law firm. It is crucial that you do right by your existing clients.
- Commercial Considerations: There are also complex commercial considerations involved with the sale of a law firm. Getting the right price for your plaintiffs’ law firm requires finding qualified buyers. A law firm brokerage can help you connect directly with the most buyers who are interested in acquiring a well-established plaintiffs’ law firm in your local market.
We Help Plaintiffs’ Lawyers Sell Their Law Firm for the Best Value
At The Law Practice Exchange, LLC, we are a law firm brokerage that helps attorneys connect with more qualified buyers. Are you considering selling your plaintiffs’ law firm? Now may be the best time. Contact us today for help with law firm valuation and to get connected with the most qualified buyers. Our brokerage team works with law firms nationwide.