Articles

Private Equity Ownership in Law Firms: Changing the Law Firm Landscape

The legal profession has long been viewed as a bastion of tradition, with law firms often remaining within family ownership or operating as partnerships for generations. However, a significant shift is underway, fueled by the rise of private equity (PE) ownership within the sector. This trend not only alters the traditional law firm model but […]

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Boost Your Law Practice: A Step by Step Sales Process Guide

Selling your law firm is a monumental decision, signaling a significant transition in your professional journey.  This comprehensive guide will break down the essential stages of selling your law firm. We’ll cover everything from optimizing your practice for sale and identifying potential buyers to negotiating terms and ensuring a seamless post-sale transition.  

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Navigating the World of M&A Law Firms: An Insightful Guide

Dive into the world of M&A law firms, their crucial role in corporate transactions and diverse practice areas. Discover industry leaders’ impact.

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Financing Options and Trends in Law Firm Acquisition

Understanding the range of financing options available and navigating the complexities of securing funding is crucial. Traditional methods like bank loans exist alongside alternative strategies such as seller financing and installment plans. 

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Owning a Law Firm: A Guide to Profitable Practice Management

Successful law firm ownership demands more than just legal knowledge; you must also become a savvy business strategist. In this article, we will cover the core aspects of profitable law firm management, including: a strong financial foundation, operational efficiencies, client acquisition, risk mitigation, and strategies to maximize your firm’s earning potential.

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The Role of Law Firm Brokers in Sales

Selling a law firm is a complex endeavor with far-reaching consequences for retiring partners, existing staff, and valued clients. It’s a decision that requires careful planning, strategic execution, and a deep understanding of the legal marketplace. Law firm brokers are specialized professionals who guide sellers through this multifaceted process, ensuring a smooth transition while maximizing […]

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Understanding How to Successfully Buy Law Practice

For many attorneys, the idea of owning a law practice represents the pinnacle of professional achievement. It promises independence, the opportunity to build a legacy, and the potential for significant financial rewards. While the traditional path involves starting a firm from scratch, a less arduous and often more lucrative route exists – buying an established practice.

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Selling a Law Practice: A Comprehensive Guide for Success

Explore key steps for selling a law practice. Learn about preparation, finding buyers, transition process and more.

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Key Strategies for a Successful Law Firm Merger

Uncover strategies for a successful law firm merger, from process understanding to planning. Learn through real-world case studies today!

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Key Components to Successfully Selling Your Law Firm

Selling a law firm involves more than just passing the torch; it’s about shaping a legacy and turning years of legal expertise into a tangible transition. From detailed succession planning and the pivotal role of goodwill to strategically presenting future revenue potential and emphasizing client caseload transitions, we’ll explore each aspect with a professional lens.

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Insider’s Guide: How to Successfully Buy a Law Firm

In the bustling market of today’s legal profession, acquiring a well-established law firm could be the springboard to realizing your dreams—propelling you headlong into success and creating the future you envision for your firm, yourself, and your family. 

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Payment Term Options for Your Law Firm Sale

The task of putting your law practice for sale may seem daunting, but fear not! This blog post serves as your guide on this unique journey. We’ll delve deep into understanding the importance of valuation during sales transactions, explore the impact of diverse buyer profiles on payment terms, and much more!

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Law Firm Valuation: Strategies to Get the Real Market Value of Your Law Firm

Valuing a law firm is no straightforward task; it involves a delicate balance between art and science. It encompasses more than tangible assets, considering the reputation you’ve built, the client relationships you’ve nurtured, and the legacy you’re passing on. The primary strategy in law firm valuation is recognizing that it’s not solely about the financials but also about the intangible elements that make your practice distinctive.

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Purchasing a Law Firm in Today’s Competitive Market

Dive into our detailed guide on purchasing a law firm. Uncover the process, financial aspects, and ethical considerations crucial for success.

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Creating a Smooth Transition: Law Firm Succession Planning

Uncover the secrets of effective law firm succession planning to ensure smooth transitions and retain clients. Start with our guide today!

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Key Considerations When Buying a Law Firm

Discover the key considerations you should consider when thinking about buying a law firm.

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The Comprehensive Guide to Acquiring a Personal Injury Law Firm

The legal industry is unique, with its intricacies and specificities, especially when it comes to mergers and acquisitions. If you’re in the market for a personal injury law firm, this guide will walk you through the process, highlighting key considerations for valuation, purchase, and transition. 1. Understanding Your Objectives Before you even start looking for […]

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Effective Law Firm Sales Transactions: Understanding Dynamics, Key Players, and Critical Considerations

Discover effective strategies for successfull transcation of law firms for sale. Learn how to maximize value, locate the right buyer, and ensure a smooth transition.

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Private Equity Owners Can Remedy Law Firms’ Agency Issues

Private Equity Owners Can Remedy Law Firms’ Agency Issues By Michael Di Gennaro (September 22, 2023) Law firms, like many businesses, are affected by agency problems,  the significance of which depends on law firm size and structure as  well as the relationships between firm stakeholders. An agency problem arises from the separation of ownership and […]

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3 Strategies for a Profitable Law Firm Sale

Explore effective strategies for a law firm for sale. Learn how to prepare, value and negotiate your way to an optimal deal.

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How to Value a Law Firm: Decoding the Process

How to value a law firm or a law practice is a good starting point, it’s not just simple math of any valuation methods or other business valuation for your growing law firm. It involves considering tangible assets like real estate or equipment but also intangible ones such as client base, brand identity, growth potential […]

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Why Now Might Be the Right Time to Sell Your Plaintiffs’ Law Firm

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 […]

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Successfully Integrating a Recently Acquired Law Firm Into Your Practice

Over the years that we’ve helped lawyers buy and sell their law firms, we’ve seen numerous successful acquisitions and their integrations, but have also witnessed the challenges that can come along the way. Integrating a newly acquired law practice into an existing law firm is no small feat. It requires careful planning, strategic execution, and […]

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How a Brokerage Firm Can Help You Sell Your Law Practice

For any number of different reasons, you may be ready to move to the next stage of your career or the next stage of your life. Yet, selling a law firm is complicated. It is imperative that you are able to get the best price for the firm that you built.  You can have support […]

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Seven Things to Ensure a Smooth Sale of a Legal Practice

Are you preparing to sell your law firm? Whether you are planning to retire or transition to another career opportunity, it is imperative that you set yourself up for a smooth sale of your legal practice. By doing so, you will be able to get the greatest value from the business you built and put […]

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A checklist for transitioning leadership in a law firm

A law firm is a complex business. Whether you are buying a law firm or selling a law firm, it is crucial that you have a well-developed strategy to protect your rights, your financial interests, and the future operations of the practice. Transitioning leadership within a law firm can be challenging. With a proactive approach, […]

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The Importance of Law Firm Succession Planning

Every business needs to be prepared for the future. Law firms are no exception to the rule. A crucial part of planning for the future of your legal practice is putting a comprehensive business succession plan in place. Law firms without a well-crafted succession plan are vulnerable. At The Law Practice Exchange, LLC, we are […]

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Five Mistakes to Avoid When Buying a Law Firm

Law is one of the most competitive industries in the United States. The most recent data from the American Bar Association (ABA) shows that there are approximately 450,000 law firms nationwide. Buying a legal practice could be a great way to harness growth opportunities and secure a prosperous future. As the acquisition of a law […]

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Selling Your Personal Injury Practice: What You Need to Know

Personal injury law is a highly competitive field, and as a personal injury attorney, you may find yourself at a point where you’re ready to move on and sell your practice. Whether you’re looking to retire, take on a different type of legal work, or simply move on to a new chapter in your life, […]

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How to Conduct Proper Due Diligence When Buying a Law Firm

Law is a competitive industry and seems to becoming more competitive day by day. According to the American Bar Association (ABA), there are approximately 450,000 law firms nationwide. If you are looking at ways to stay ahead of your competition then buying a law firm—either as a stand-alone business or to acquire/merge with your existing […]

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Is Your Law Firm Ready For Sale?

As a law firm owner or partner, you may eventually find yourself in a position where you want to sell your firm. This can be for a variety of reasons, including retirement, a desire to move on to a new opportunity, or simply a change in personal circumstances. Whatever the reason, selling a law firm […]

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More On Law Firm Valuation

In today’s post, we’ll be discussing the process of valuing a law firm. There are several factors that can impact the value of a law firm, including the size of the firm, its reputation, the quality of its attorneys, the types of cases it handles, and its financial performance. One common method for valuing a […]

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Your Guide to Appraising a Legal Practice

Are you preparing to buy or sell a law firm? If so, it is imperative that you have an accurate valuation of a legal practice. This raises an important question: How do you appraise a law firm? The short answer is that you must take a comprehensive approach that properly accounts for the practice’s hard […]

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How Do You Value a Law Firm?

The legal industry is competitive. The American Bar Association (ABA) reports that there are approximately 1.3 million licensed attorneys in the United States. Those attorneys work across more than 400,000 law firms—with the overwhelming majority being small law firms having nine or fewer attorneys on staff. Given the numbers of these law firms, it begs […]

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Buyer Financial Pre-Qualification – What, Why and How?

You’ve decided that it’s finally time to take the step and move forward in exploring a purchase of a law firm. You have located one or a few potential law firm listings that you think may be the right choice for you or your law firm’s needs and you are ready to get things moving. […]

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Your Options When You’re Ready To Retire From Your Law Firm

The legal industry is aging and replacement law firm owners and leaders are needed. According to data from the American Bar Association (ABA), a record high percentage of active attorneys are senior citizens. While more and more lawyers are working later in their life, a significant share of the lawyer population is expected to retire […]

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What’s My Law Firm Worth?

The law is one of our most important industries. According to data from IBISWorld, there are nearly 450,000 law firms in the United States. Similar to any other business, professionals buy and sell law firms. Though, the process can be more complicated. One central challenge is that valuing a law firm is notoriously difficult. Still, […]

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Questions a Potential Law Firm Acquirer May Ask

According to data from Statista, the world of law is a $350 billion dollar per year industry in the United States. The American legal market is by far the largest in the world. Law firms large and small are bought and sold every year. Whether you are buying a law firm or selling a law […]

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Preparing For A Law Firm Sale – What Documentation Do You Need?

Though long and satisfying, a career in law also has its sunset years. You will have to think about what to do with the law firm you have built for years through blood and sweat at some point. You will want the best for your law firm as you’ve done for many years. One decision […]

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Five Pitfalls To Avoid With A Law Firm Succession Plan

According to a recent American Bar Association report, over 65% of law firm partners will retire in the next eight years. Baby boomers, who have dominated law firm management for decades, are retiring, and millennials are taking their place. Is your firm ready for this change? The legal sector is undergoing significant upheaval, and the […]

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How To Sell Your Law Firm: An Overview

When you have worked at your law practice for many years, weariness often starts to creep in and manifest itself in many ways. For some attorneys, this is a sign that it may be time to consider selling their firm. While most professionals begin exploring succession avenues at some stage of their career, many lawyers […]

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Have You Saved Enough To Exit Your Law Practice?

Have You Saved Enough To Exit Your Law Practice? Most attorneys made their law practices their largest source of income for themselves and their families. The dependency on that income may become less over the years, but there is always the question of what things would look like if the law practice salary, profits, and […]

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What Does ‘Selling’ A Law Practice Really Mean?

What Does ‘Selling’ A Law Practice Really Mean? Different ideas come to the minds of attorneys when they hear ‘selling a law practice’. Some think of just the sale of their fixed assets to an up-and-coming attorney or new firm in town and shutting down their actual law practice. Others think maybe they could sell […]

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Thinking of Selling Your Law Practice? Should You Consider an Internal Sale First?

Thinking of Exiting Your Law Practice? Should You Consider an Internal Sale First? If you are one of the law practice owners who is looking at setting plans for retiring from your law firm or selling your law practice you have more options than you think for exiting for value. Over the last several years […]

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Eight Key Considerations in a Law Practice Transition Agreement

Eight Key Considerations in a Law Practice Sale Agreement. While many different considerations are leading up, during, and after the sale process, here are a few to which you should pay particular attention. 1.Valuation.   It is common to highly value our work. This is particularly true for business owners, and lawyers are no different. As […]

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5 Ways You Can Exit Your Law Practice

5 Ways You Can Sell Your Law Practice. So you’ve decided to plan for exit and sale of your law practice? Congratulations! Great first step. Now what? Now, you must go forward and choose the best exit strategy for you and your practice. Consider these options noted below as a starting place. Then get your […]

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Taxes and Fees When Selling a Law Firm

What You Need to Know About Taxes and Fees When Selling A Law Practice. Not every lawyer lives in the world of business sales and transitions and even fewer have ever had the opportunity to advise and work on a law practice sale. The unique blend of law practice transaction specifics with the ever-changing landscape […]

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Succession Planning For A Law Firm

Law Practice Succession Planning – Set Your Goals and Take The First Step. The reality is that every lawyer at some point in time needs a plan for when he or she steps away from the legal field and the options for buying or selling a law practice should be considered. Thanks to life’s multitude […]

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The Benefits of Using a Broker in Selling a Law Practice

The Benefits of Using a Broker in Selling a Law Practice Regarding the sale of a law practice, it is reasonable to say that there is a distinct lack of communication,  opportunities, and knowledge in the professional marketplace. While you may know that you want to buy or sell a practice, you may not know […]

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Six Steps to Prepare Your Practice for Sale

Six Steps to Prepare Your Practice for Sale So you’re ready to sell your law practice. That’s great! Selling your law practice can be an excellent way to realize the value built up over years of practice and to generate income as you transition into the next phase of your career or life. But where […]

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Law Practice Sale Tips

Law Practice Sale Tips: Check the Checklist off the Checklist. As most (probably all) legal practitioners know, a good checklist is a lifesaver when it comes to completing legal matters. That principle holds whether the matter involves suing on a faulty construction defect claim, administering an estate, or selling a business: especially when it comes […]

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Things to Remember When Selling

Specific Things to Remember When Selling Your Law Practice. While many different considerations are leading up, during, and after the sale process, here are a few to which you should pay particular attention. Valuation and Increasing Purchase Price. It is common to value our work. It is particularly true for business owners, and lawyers are […]

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The Feared 10 Letter Word for Lawyers: Retirement

Tips to Ease The Lawyer Retirement Transition. The day is drawing near, and you are preparing to be a retired attorney. You may have thought about retirement a lot over the years and what it may look like spending more time with friends and family, working on hobbies, traveling, and all the other items you […]

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Taking The Fear Out of The ‘R’ Word

Dear Lawyers, It’s Time to Take The Fear Out of The ‘R’ Word. There are so many reasons that some attorneys approaching retirement decide to postpone any decision. Instead, focus on their clients, internal responsibilities, and other relationships. The most common sense most attorneys seem to be a lack of clarity about what the future […]

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How to Break ‘THE’ Big News

How to Break ‘THE’ Big News About the changes in  Your Law Practice?  If you are considering selling or another exit from your law practice keeping it quiet is the key. Typically, no good will come from too many people knowing about you looking to exit. However, there will come the point when the deal […]

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Handling Client Transition When Selling

Practically speaking, handling client transition when selling includes and means selling and transferring your clients. There are several things to do and considerations to take into account.  Here is a list of things to remember and consider when handling client transition when selling a law practice. Client notice  Written notice regarding the proposed sale Conflicts of Interest […]

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Four (4) Law Practice Deal Roadblocks to Avoid

During a law practice deal, there are four deal roadblocks to avoid. 1. Financials –If you are a practice owner and don’t have financials that are in good form and up-to-date with the ability to generate reports for accounts receivables, employee costs, historical comparisons of profits and losses, then the time is now to get […]

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3 Questions to Ask Employees

The 3 Questions to Ask Employees During a Law Practice Ownership Transition. The foundation of a good transition plan is open communication. Start by meeting with each of the employees and asking them these three questions during the transition. 1. What worked in the former practice, and what should we make sure we continue? 2. […]

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Your Law Practice Has Value Upon Exit

Every Law Practice Has A Quantifiable And Marketable Value. Like any other business, each law practice has a different and marketable value of its own. You have built and managed a proven business model. So, you have come to the understanding that your law practice has value, but next in line is the real question: […]

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Transition or Exit from Your Law Practice?

Considering a Transition or Exit from Your Law Practice? Prepare and Proceed With the Right Team in Place A law practice is a complex business with many differing and dissimilar components combined to work as one. It makes sense, to seek the assistance of a resource for each necessary area of knowledge. There are several […]

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7 Factors That Affect Your Law Firm Value

7 Factors That Affect Your Law Firm Value. If you have read up or experienced the valuation process you already know that there are factors that affect your law firm value such as the owner’s cash flow from the practice which is typically the single biggest factor in determining a practice’s value. However, here are […]

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What Does Buying a Law Firm Mean?

What does buying a law practice really mean? The marketplace for selling and buying a law practice is still young as compared to some of the other professional business marketplaces (dentists, CPAs, etc.). So, it’s not surprising that we often get questions from those attorneys looking to transfer their practice and wind down (the “sellers”) […]

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Should I Buy or Start a Law Practice?

Law Practice Startup or Acquisition? Attorneys today are looking at more options for practice growth and expansion than ever before. Due to continually increasing challenges in the legal profession and an abundance of the attorney workforce for hire, the competition in certain practice areas or specific geographic markets is sometimes too burdensome to consider starting […]

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Taking Control of Your Professional Retirement

Taking Control of Your Professional Retirement. As lawyers, we like planning ahead of time. It allows us to try and control how things will go for our clients and get them to the desired outcome or minimize the harm. Thinking ahead about how to control a case is a massive part of what we do […]

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Looking for Law Firm Growth? Consider Buying a Law Practice.

Purchasing an existing law firm may be ideal if you are looking to grow your existing practice or law firm, or if you are an in-house or a lateral looking for immediate stability in revenues along with the flexibility and independence that comes with firm ownership. The upward climb from starting from scratch to sustainability […]

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Acquiring a Law Firm May Be Smarter Than Starting From Scratch

Purchasing an existing law firm may be ideal if you are looking to grow your existing practice or law firm or if you are an in-house or a lateral looking for immediate stability in revenues along with the flexibility and independence that comes with firm ownership. The upward climb from starting from scratch to sustainability […]

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Rewards and Risks of Buying a Law Practice

Buying a law practice isn’t something that is commonly discussed, but if you haven’t considered the financial and professional opportunities that may come with purchasing a law practice it may be time to do so. Attorneys have been buying law practices, whether internal transfer (partner to associate) or external (firm acquisitions and mergers) for years, […]

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ARE YOU PREPARED FOR THE FUTURE?

As attorneys, we are called on from time to time to advise and advocate for clients’ needs while also anticipating items they may not be thinking about on the road ahead in life or business. Many attorneys will also advise those same clients, businesses and individuals on contingency and succession planning they should consider if certain […]

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Excuses Attorneys Use to Avoid Exit Planning

Like every person and business owner, you will one day exit your law practice. That day doesn’t have to be today, but whether voluntarily through transition and retirement or involuntarily through disability, death or other unplanned event the day will come. When it does, you will want to make sure you have planned to achieve […]

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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 […]

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Financial Questions You Need To Answer Before Leaving Your Law Practice

Financial Questions You Need To Answer Before Leaving Your Law Practice You have spent your entire career building a great law practice. It’s now time for you to start thinking about the next stage in your career. What do things look like after the practice of law? Before you take the leap and decide whether […]

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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 […]

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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 […]

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3 Simple Questions to Ask Before Any Law Practice Purchase

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 […]

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4 Key Considerations to Buying a Law Practice

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 […]

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LPE Approved As A BBP Industry Expert

The Law Practice Exchange, LLC is pleased to announce that we have been approaved as a BBP Industry Expert for the industry of Law Practices/Legal! We will be included in the 2016 Business Reference Guide. This book is the “essential guide to pricing businesses with up-to-date rules of thumb and pricing information for almost 700 types […]

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Estate Planning for the Small Firm Partner or Solo Practitioner

Time to Plan! Estate Planning for the Small Firm Partner or Solo Practitioner The fundamental principal of estate planning is to anticipate and prepare for the major life events, particularly, what will happen to one’s property upon disability or death. The same train of thought can and should be applied to your law practice. Preparing […]

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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 […]

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5 Things to Consider Before Buying a Law Practice

5 Things to Consider Before Buying a Law Practice If you have been considering the benefits of buying a law practice in order to expand or grow your client base, be sure to ask yourself the following questions at the beginning of the process before going too far. Buying a law practice could be one of the […]

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‘I’m Thinking of a Number Between 1 and…’ What’s Your Law Practice’s Valuation Number?

Every Law Practice Has A Quantifiable And Marketable Value Of Its Own As seen in Lawyers Mutual: Put Into Practice August 2015 Issue My law practice has value? Seriously? Seriously. Like any other business, each law practice has a separate and marketable value of its own. You have built and managed a proven business model. […]

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The Financials of a Law Practice Value Determination Explained

Many – not all, but many – deals turn on the purchase price. The rest can typically be worked out if the purchase price is agreed upon. Obtaining an accurate valuation of the practice, therefore, is one of the most important things you can do as a seller to help you actually sell the practice. […]

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Top 10 Practice Exit Planning Mistakes

If you are considering exiting your law practice in the next few years make sure to plan ahead and avoid these costly mistakes. 1. Failing to Consider All Your Options – Should you sell your practice internally? Have you considered an external sale? Is your Associate or junior partner ready to pay? 2. Not Getting Help – […]

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