If you’re a solo or small firm owner thinking of selling your law firm, for certain practice areas, transitioning repeat clients to the buyer is key. Indeed, the primary reason your firm has value and has a willing buyer are those client relationships that took years to build. Transitioning clients successfully requires managing and finessing human relationships, a task that—even with the best of intentions—is never easy. Everyone has the same goals, including quality, predictability, and trust. Will your successor meet your existing clients’ goals? ... Read More

I’ve got some good news and some bad news. First, the good news. Men in the United States aged 65 can expect to live 18.2 more years on average. Women aged 65 years can expect to live around 20.8 more years on average. The bad news is that some lawyers read that and somehow think that they can practice that long. ... Read More

Most lawyers are familiar with Rule 5.4 of the Model Rules of Professional Conduct. In a nutshell, it says that lawyers must own law firms. Virtually every state adopted the rule. The purpose is supposedly to prevent nonlawyers from interfering with a lawyer’s independent and professional judgment. ... Read More

Take a careful look at your law firm’s most influential leaders and biggest rainmakers. Chances are good that these individuals will be retiring over the next decade. Is your law firm prepared for the impact of this seismic generational transition? ... Read More

It should come as no surprise that the question most prospective clients ask me is, “What is my law firm worth?” My response is always as follows: Imagine it’s Friday afternoon and you ride off into the retirement sunset never to return to the practice of law. Then, on Monday morning, the phone rings at your old desk, and your successor answers. ... Read More

Lawyers have a reputation for being prepared. Yet it never ceases to amaze me how poorly lawyers prepare for job interviews. Although I have no hard proof of this, my experience working with lawyers has shown they’re typically woefully unprepared. Instead of preparing, they wing it, thinking they’re smart enough to impress whoever is on the other side of the table or, nowadays, whoever is on your Zoom screen. ... Read More

When purchasing a law practice, buyers seek revenue they ordinarily could not obtain on their own. For example, buyers hope that, with the proper introductions, the relationships that a seller has with repeat clients can be successfully transitioned to the buyer. The same can be said for a seller’s referral network, be they former clients or other professionals. ... Read More

A basic premise of strategic planning is to gather information to know who you are as a law firm. After all, if you don’t know who you are, how do you know where you want to go and whether you can realistically get there? What’s most important during the strategic planning process is gaining an understanding of the firm from the inside and the outside. Firm culture addresses the former; reputation addresses the latter. ... Read More

I always tell clients that my appraisal provides an excellent starting point for negotiating the price of a law firm with an insider, but that it is unlikely that it will be the final word. While it may sound like a cliché, for most small firm insider deals, parties ultimately agree on a price that seems “fair.” ... Read More

Your solo or small law firm is busier than ever and you desperately need another warm body to complete the work. Resist the knee-jerk reaction to hire another lawyer. Instead, assess whether hiring a paralegal can fill the need. You’ll find that in most practice areas it can. ... Read More

Law practices are often valued in divorce proceedings. As such, lawyers frequently assume that it should be relatively easy to apply similar valuation principles when trying to sell a practice. Nothing can be further from the truth.

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In these pandemic days, many Americans have taken economic hits that have only led to further legal problems. But those less fortunate are often left to face their legal problems alone because they can’t afford legal counsel. I strongly suspect that, for most readers of this post, the economic hit you’ve felt has been minimal in comparison. If you think you know where I’m going with this—you’re right. The time is ripe to pursue pro bono work if you’re not already doing it. Pro Bono Work Is Our Social Responsibility Lawyers have a special responsibility to give back. Why? Our society provides us with an exclusive license to do what we do. What we do provides countless opportunities to make a respectable and, for many, a lucrative… ... Read More

Purchasing another lawyer’s practice is fast becoming a popular and more common way to grow or diversify one’s law firm. There are three main reasons for this: ... Read More

For reasons that escape me, many people in the legal profession believe the practice of law is not amenable to working part-time. While this issue usually arises for new parents, part-time work is also a great option for senior solo and small law firm attorneys to consider before they completely exit the profession. Read More ... Read More

Appraising a law firm requires assessing numerous factors. During the appraisal process, some attorneys will say to me something along the lines of, “In my law firm, I’ve got this great system that can…. That alone should be worth…” The marketplace for law firms doesn’t work like that, however. Here’s why. ... Read More

Law firm succession planning is certainly getting its share of attention these days. It makes sense, too, considering one-third of the attorney population will be made up of boomer lawyers (those 65 years of age or older) within the next 10 years. ... Read More

It’s getting to be that time of year when lawyers decide whether to raise their hourly rates or fixed fees when the new year begins. I suspect that many will fear doing so in the middle of a pandemic. Others always seem fearful of increasing legal fees, pandemic or no pandemic. My advice — with very limited exceptions — is to go for it. Clients are never as price-sensitive as you think. ... Read More

One of my truisms for valuing a law practice is that “all revenue is not created equally.” For example, revenue that stems from past clients or one’s referral network is far more valuable than the revenue generated from seminars or webinars. ... Read More