What makes selling a law practice in California different from selling one elsewhere? Quite a bit, actually. California’s legal market operates on a different scale than most states. Competition is intense, operating costs are high, and buyer expectations are unique. What follows is a practical overview of what makes California’s legal market different and what that means for attorneys planning their exits. ... 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

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. ... Read More

Over the past year, the internet lit up with articles and blog posts about private equity’s invasion of the legal profession. McDermott Will & Schulte, the large international law firm, confirmed it was exploring a restructuring that would let private equity hold a stake, and Quinn Emanuel’s founder said he was open to outside investment. ... Read More

You've built a great office. Prime location, professional setup, and even some upscale finishes. That adds value when it's time to sell your law practice. Or does it? Small-firm owners and solo practitioners often believe that their office space, whether owned or leased, significantly enhances the appeal or even the value of their practice. After all, many have invested years building out their office. It’s natural to expect that investment to pay off. ... Read More

Two of the most expensive mistakes lawyers looking to sell their practices make are signing a long-term lease, and failing to create a contingency plan for incapacity. We’ll take a look at why that is in a moment, as well as how to avoid those pitfalls. ... Read More

A law firm broker is a professional intermediary who facilitates the sale, purchase, or merger of law practices or law firms. They manage the entire process, including valuation, confidential marketing, vetting buyers, and negotiating terms. Law firm brokers help solo and small-firm owners exit their practices while ensuring confidentiality and maximizing value. Key roles of a law firm broker include: Valuation: Determining an accurate, realistic asking price for the law practice Confidential Marketing: Creating marketing materials and listing the business without revealing its identity to competitors or employees. Buyer Screening: Finding and vetting potential buyers to ensure they have the practice expertise and the financial capability t… ... Read More

A small firm owner in a mid-sized city spent months secretly exploring the sale of his practice. He had a strong client base, a stable referral network, and an intimate team that he had built over three decades. When a potential buyer expressed serious interest, he agreed to meet. ... Read More

Rule 1.17 of the Model Rules of Professional Conduct states that after a sale, sellers must “cease to engage in the private practice of law.” Does that mean you must hand over the keys, walk out the door, and immediately ride off into retirement sunset? And if the answer is yes, how is that realistically possible? ... Read More

If you’re like most lawyers, you didn’t go to law school because you loved spreadsheets and financial reports. For most small firm owners, financial reporting receives only the level of attention needed to keep the firm operating. But when the time comes to sell the practice, clear financial records suddenly become very important. Financial clarity can be the difference between a smooth, professional transaction and a serious buyer losing interest. If your books are clean, consistent, and understandable, you strengthen your negotiating position. If they are messy or unclear, the purchase of even a strong practice can appear risky for a potential buyer to undertake. ... Read More

I recently worked with two elder solo attorneys in excellent health. They wanted to work 2-3 more years at almost a full-time pace. However, they were old enough and wise enough to know that a sudden health issue could derail all of that if they didn’t make a plan soon. I’ve written before about the risks of dying at your desk. Suffice it to say that if that occurs, you leave a mess for clients, staff, and especially grieving spouses and children. Further, selling a practice is way more difficult without the owner around. And even if it can be done, it is usually at fire sale terms. ... 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

If you are considering selling your law firm, you have two basic options. They are: Have an existing associate or associates (if you have associates) buy you out, or Transition to a third party (sell to or go “of counsel” with another firm). Let’s take a look at the considerations for each. ... 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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Lawyers aren’t just advising private equity (PE) firms anymore, they’re becoming investors themselves, taking a page straight from the PE playbook. While the legal profession debates whether PE should own law firms, some lawyers have already made their move, quietly stepping into the role of investors themselves. ... Read More

If your firm is like many solo and small law firms, a significant portion of your firm’s value derives from the amount of business your website generates. When selling a law firm—be it an actual sale or a transition to another firm as “of counsel”—it is therefore critical that the buying firm retains the benefit of the seller’s previous website traffic. ... Read More

Are you a solo lawyer or small-firm owner facing retirement? Then, like most Boomer lawyers out there, you’re contemplating the option of selling your law practice. ... Read More

CPAs, appraisers, and other business evaluators use various valuation methods to value law firms. To be quite frank, none should be relied upon as a valuation technique for legal practices. In this post, I’ll break down the common valuation methods. I’ll briefly explain how each method works and how it falls short in measuring the value of a law firm. ... Read More