I like to think that lawyers are generally an intelligent group. Like doctors, they know their areas of expertise inside and out. This intelligence can occasionally have an unfortunate after-effect, though, wherein some lawyers get overconfident about their skills in areas outside of their knowledge base.
In the 26 years I’ve spent facilitating business sales, I’ve found that most attorneys have two fundamental misunderstandings about internal law firm transfers, one regarding time, the other regarding money. We have to correct these misconceptions before an internal sale can be a viable succession strategy.
- Time: An internal transfer is generally a multi-stage, multi-year process. The new attorney needs time to build up the equity in your firm and to take over operations from you. The process works best when there is sufficient time for a smooth transition.
- Money: Your associate or junior attorney does not need to have a huge stockpile of cash on hand to buy your firm. They are a junior attorney; it would be absurd to expect them to have $50-$90k in cash sitting around! The transaction is structured to avoid this.
Smart Planning for Your Most Valuable Asset
You’ve worked hard to build your firm—now cash in on the investment! Our guide will explain the sale process and show you how to estimate the value of your firm, how to prepare your firm for sale, and much more.
Set yourself apart from other attorneys. Download our guide and say very loudly, “I want to…
Working with Alexander Abramson
As a successful attorney you should be excited about the potential of selling your firm and increasing your retirement fund. With the right help and the right advisors, you can effect a profitable and successful sale of your law practice with about the same mental and emotional hassle as just closing the doors—it just takes some extra planning!
Regardless of whether you want to sell by the end of the year or in 5 years, the first step on your path to selling your law firm and capitalizing on the investment you’ve made is a Sale Readiness Assessment.
We will help you identify your firm’s strengths and weaknesses and develop a transition strategy that fits your circumstances. Call us today at (407) 649-7777 or email a team member to schedule a Sale Readiness Assessment.
