When we discuss attorney “transitions” we generally mean one of two types of transactions: growth or exit. Attorneys looking to grow may choose to (a) merge with or into another law firm, or (b) purchase another existing law practice. Attorneys looking to exit the practice of law – often to retire – may choose to either (a) sell their practice to an existing law firm, or (b) wind down by joining another law firm in an of-counsel role.
In this post, we discuss four reasons why you may want to exit by selling your firm or winding down in an of-counsel role with another law firm.
- Value is as high as it is going to get. You may not realize it, but there is significant value in your practice. It is an asset developed over many years and today it is likely at its peak value. Your client list, referral sources, and technical knowledge are all resources that have significant value to another law firm.
- Quality of life. After many years of working, you may be ready for a better work/life balance. By selling your practice, or joining an existing practice, you may be able to decrease stress by not having to worry about office logistics, employee matters, accounting and invoicing, etc.
- No internal candidates. You are ready to capitalize on the asset you have developed, but when you look around the room you realize that your current attorney team does not have any viable candidates to purchase your firm. Your employees are either not equipped to run a firm, or not at a stage of life where they have the financial capacity to purchase your practice.
- Fair market value. As noted earlier, you have developed a valuable asset. Other law firms can reap the operational and service benefits of your current client list, expertise, and referral pipeline. You recognize that other law firms will pay for the value you have created and that you can bring to the table.
If you are an attorney that is interested in transitioning by either growing your firm, or by exiting your practice, then please reach out to us so we can discuss your options, and ways we may be able to help you achieve your transitioning goals.
For questions or assistance with any legal matters related to your business or estate planning, contact Fournier Legal Services at firstname.lastname@example.org or 860.670.3535 now for a consultation and planning session.
Joseph E. Fournier is an Attorney and a CPA who has more than twenty years of experience in a variety of business legal matters, including start-ups and company formations, drafting shareholder and operating agreements, contracts, employment law, commercial litigation, tax planning and audit defense, and mergers and acquisitions (M&A). He also handles estate planning matters, such as business succession planning, wills, trusts, and probate.