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 – […]Read More
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. […]Read More
‘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. […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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, […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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”) […]Read More
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 […]Read More
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 […]Read More
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: […]Read More
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. […]Read More
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 […]Read More
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 […]Read More
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 is […]Read More
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 […]Read More
The Feared 10 Letter Word for Lawyers: Retirement
The Feared 10 Letter Word: 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, […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 such, […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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, […]Read More
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 […]Read More
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. […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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 […]Read More
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, […]Read More
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 […]Read More
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 […]Read More
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, […]Read More
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 […]Read More
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 […]Read More