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You've decided it's time to sell your law practice. The next question almost no one can answer: Who's going to buy it?
Unlike many other industries, the market for law firms remains immature and underdeveloped. There is no central marketplace where qualified buyers browse available practices. Most transactions occur privately through existing relationships, referrals, or discreet outreach. As a result, many buyers and sellers never find one another.
The good news is that buyers do exist. The bad news is that if you don't know where to look, you may never find them. Below, we'll explore where to look, what to consider, and which qualities to look for.
Finding a Firm Buyer: Start Close to Home
Don’t overcomplicate this. Start with the people you already know.
If you have associates, start with them. They already understand your systems, clients, and culture. You also have something you won't have with an outside buyer: years of firsthand experience with them. You know their strengths, judgment, and whether they have the skills and capacity to lead the firm. While not every associate has the desire or ability to become an owner, they deserve careful consideration before you look elsewhere.
If an internal transition isn't realistic, consider the lawyers and firms you've come to respect over the years. Ask yourself: would I trust this lawyer with my clients? Competitors are often stronger candidates than expected. You already know their reputation, their work, and how they are regarded in the local legal community.
From there, broaden your search. Consider firms looking to expand geographically or those seeking to add your practice area. Your referral sources, former colleagues, and professional network may also know of lawyers who have the objective of growing through acquisition.
Another relatively new source of buyers is private equity. While not every law practice is a good fit, private-equity-backed firms are increasingly active in acquiring established practices with strong growth potential.
Know that finding a buyer rarely comes down to placing an ad. More often than not, it begins and ends with existing relationships.
Think Like a Law Firm Buyer
Most attorneys approach a sale by asking, "Who will buy my practice?" However, a better question is, "What type of firm would become stronger by acquiring mine?"
The right buyer is not simply someone with the means to purchase a law firm. They are someone who can strengthen their existing firm by acquiring your practice.
Perhaps they want to expand into your geographic market, add your practice area, strengthen their client base, or bring on an experienced team without the time and expense of building one from scratch. Your firm's reputation and years of goodwill may also be something they couldn't easily recreate on their own.
When you start thinking like a buyer, your list of potential candidates often grows much larger than you expected.
The Right Firm Buyer, Not the Perfect Buyer
It may be tempting to hold out for someone who checks every box, but that type of buyer probably doesn’t exist. If you wait too long for the perfect buyer, you might overlook the right one. Don’t let perfect be the enemy of good.
Instead, focus on whether the buyer has the right stuff to run the firm successfully. Things to look for include:
- A proven track record
- A strong professional reputation
- A history of treating clients well
- A history of treating staff fairly
- Similar values (a plus, but not a requirement)
In practice, objectively evaluating a buyer is easier said than done. A broker who specializes in law firm sales can provide an outside perspective and help you avoid the wrong buyer. At times, a broker may even know prospects that are outside of your network.
Remember that during the transition, you will likely work closely with the buyer. In many respects, you will become business partners, making trust and the ability to work well together just as important as the purchase price.
Many law firm sales are paid out over time based on future revenue. If the buyer succeeds, you are more likely to achieve the financial outcome you hoped for. Thus, choosing the right buyer benefits your clients, your staff, and ultimately, you.
Final Thoughts on Finding a Law Firm Buyer
The law firm marketplace may be hidden, but qualified buyers are out there. More often than not, they are found through strategic outreach and the professional relationships you have spent years cultivating.
While this process may seem daunting, the right buyer for your firm may be closer than you think. This is especially true when you begin early.
Contact Roy Ginsburg, J.D. to Explore Your Options
If you'd like to work with an experienced law firm broker, Roy Ginsburg has helped attorneys navigate successful practice transitions for more than 20 years. If you’d like to confidentially explore your options, Roy would be glad to speak with you. Call 612-524-5837 or contact him online.
