Want to Sell Your Law Practice? Waiting Too Long Can Be Costly.

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. Posted in Articles,

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The Time To Sell Is Now!

Are You Hoping to Sell Your Law Practice? The Time To Sell Is Now! It is estimated that over 50% of law practice owners are from the Baby Boomer generation. Of these practice owners, one is turning 65 every 57 seconds and that trend will continue for the next 17 years.  Consider this growing number of potential attorneys looking to exit their law practices along with the understanding that almost 90% of practice owners do not have a documented exit strategy, the future for buying opportunities begins to look better and better for those growth-focused law firms and attorneys. However, if you are one of the Baby Boomers considering exiting your practice and selling it for value, the time to do so is now. It’s not too late and you can start the process by working on your transition plan that encompasses the following: Determine Your Personal Goals – Get Yourself Prepared First Calculate How Much You Will Need Take Steps to Maximize the Value of Your Practice Understand Your Exit Options Minimize Mistakes That Can Cost By Getting Advisors to Help Put the Plan in Action…It Will Take Time 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.   Posted in Articles,

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Don’t Have a Succession Plan? Consider Selling.

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.   Posted in Articles,

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Can You Really Buy or Sell a Law Practice?

Can You Really Buy or Sell a Law Practice? Have you ever thought about your exit plan from your practice? Retirement, family demands, a new career, or some other career pursuit may be calling. But the typical question that holds many lawyers back from entering the next phase is, “how can I afford to live without the income and resources from my practice?” For many, there are retirement savings, alternative opportunities from a second career or other options available to replace practice income. However, few attorneys actually consider the option of selling their practice as the precursor to that next step or even know that doing so is an option. Selling a practice through a law practice transition can be a great way to benefit from the value built up over years of work. In addition, there are probably even fewer growth-focused attorneys who consider the potential of purchasing a practice as a way to grow client base, income and revenue streams, and overall firm health and sustainability. The Reality Is That Every Lawyer At Some Point In Time Needs A Plan. Thanks to life’s multitude of unexpected events, that time may be sooner than you think. And when you throw in the current state of evolution of the legal profession, it becomes more and more apparent just how important it is for each practicing professional to understand the challenges and opportunities that accompany this type of transition. For instance, do you have a succession plan? A practice continuation plan? If so, have you implemented such plan, put the tools in place or sought the counsel needed for implementation? If not, you’re not alone. Few lawyers, particularly, solos and small firm members, have a signed succession or practice continuation plan in place and many don’t think about it until too late to fully recoup the practice value. With this state of flux in the legal world and the potential impact of major life events, the rules of law practice succession are still being rewritten. Gone are the days of whipping together a succession strategy, transitioning the clients to the next generation of lawyers, and sailing off into a retirement funded by the new partners at the firm. From big-firm shakeups to increasing client competition among small firms, lawyers today must contend with unprecedented financial, cultural, and marketplace changes and, as a result, each attorney must be open to transition strategies with a longer reach than those employed in the past. These broader and more modern strategies include realizing the value of a law practice through a sale or acquisition. So, How Does One Go About Buying A Selling A Practice? The knowledge of the process is somewhat complicated by the fact that law practice sales are nearly invisible to the public market. Look down the street and around town and you see house-for-sale signs everywhere. A quick web search yields any number of results detailing homes values and prices and identities of the parties involved. Established markets, like the residential real estate market, give the general public an excellent idea of how and for how much to buy and sell all sorts of items, including real estate, stock, and cars. Buying or selling a business (especially a law firm) is a different story; potential buyers and sellers need to work a bit harder to find and utilize the resources and opportunities available in the law practice marketplace. Self-education is a good place to start. A potential buyer or seller typically doesn’t know whether any given attorney wants to exit his practice or buy someone else’s, what his practice looks like, what the process or the price to purchase or sell may be. Therefore it becomes important for any lawyer to put in some time, do some research, and learn the basics about the law practice marketplace, how it works, the resources available and how it may help a lawyer looking to transition or grow. Putting the right team of advisors in place is also an important step. The buying or selling of law practices isn’t new, but the approach and need to maximize the practice’s value through an active marketplace search and proper transition structure are setting new benchmarks for lawyer transition success stories. 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. Posted in Articles,

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