Attorney Robert Schaller

The Cost of Selling a Law Firm

Selling a Law Firm

The internet has changed the marketplace for selling a law firm. Universal access to the web has fundamentally changed the way retiring attorneys offer a law practice for sale. Law firms for sale used to be the exclusive purview of business brokers who had a book of business and relied on business connections to match sellers with buyers. Not anymore.

Law Firms for Sale By Owner

The internet has introduced a whole new way of selling a law practice. Online classified advertising forums have popped up for retiring lawyers selling a law firm – much like the for-sale-by-owner market. Retiring lawyers can offer a law practice for sale in a matter of minutes and reach an audience accessible by every licensed lawyer in the United States sans broker. The online advertising forums have increased the frequency of seller and buyer contact. Prospective buyers can peruse the inventory of available law firms in a matter of minutes and without the hass…

Selling a Law Firm per Rule 1.17- Financing Options

Selling a Law Firm

Selling a law firm pursuant to Rule 1.17 can be a joyous event for lawyers retiring from the practice of law. Decades of demanding work building a firm are rewarded with a large payout for sellers and increased market share for buyers. A law practice sale is like other major transactions – a willing buyer agrees to pay a willing seller an agreed upon price. But selling a law firm differs from other transactions become of the magnitude of the sale price. The price of a law practice can be $100,000 to $500,000 plus.

Law Firms for Sale

Selling a law practice used to be difficult before the advent of online classified ad forums. Law firms for sale can be advertised on sites like https://lawpracticesale.com/. A centralized marketplace can draw more buyers. Law firms for sale identify the practice area, secondary practice area, tertiary practice area, number of clients, number of clients, average revenues, firm structure, and other information…

Law Firms for Sale- Attorney Robert Schaller

Attorney Robert Schaller recently read an interesting article on law firms for sale published by Lawyers Mutual Liability Insurance Company of North Carolina. To read the article click the link. Law firms for sale is an interesting topic to lawyers nearing retirement. Make sure to read ABA Rule 1.17.

The issues discussed include: Law Practice Exit Planning; Law Practice Valuation; Six Steps to Prepare Your Practice for Sale; and Eight Key Considerations in a Law Practice Transition Agreement. The Article also provides a variety of helpful checklists. The article begins with a discussion of Rule 1.17 and answers the question "Can you Really Buy or Sell a Law Practice?" Next, the article discusses the opportunities available to lawyers selling a law firm followed by a discussion of the opportunities of attorneys buying a law firm.

The section on law practice exit planning is perhaps the most interesting section of the article. Will it be a merger with…

ABA Rule 1.17 Sale of Legal Practice

Lawyers should review ABA Rule 1.17 before buying or selling a legal practice. Some states have enacted versions of ABA Rule 1.17. Lawyers are urged to consult with ethics counsel to review the version of ABA Rule 1.17 that was adopted in the applicable jurisdiction.

The sale of law practices has not always been allowed. Historically, sole practitioners were out of luck when they retired. Law practice sales were prohibited. Sole practitioners' counter-parts in small and not-so-small firms had an advantage by selling to associates or other partners who would continue the practice. That unfair advantage was neutralized with the adoption of ABA Rule 1.17.

ABA Rule 1.17: Client-Lawyer Relationship,

A lawyer or a law firm may sell or purchase a law practice, or an area of law practice, including good will, if the following conditions are satisfied:

(a) The seller ceases to engage in the private practice of law, or in the area of prac…

Selling a Law Firm in Illinois. Rule 1.17

Selling a law firm in Illinois is now permitted with the adoption of Rule 1.17. Illinois attorneys considering buying or selling a law firm for sale should study the differences between Illinois Supreme Court Rule 1.17 and ABA Rule 1.17.

Ill. Sup.Ct. R. 1.17 -Sale of Law Practice:

A lawyer or a law firm may sell or purchase, and the estate of a deceased lawyer or the guardian or authorized representative of a disabled lawyer may sell, a law practice, including good will, if the following conditions are satisfied:

(a) The seller ceases to engage in the private practice of law in the geographic area in which the practice has been conducted;

(b) The entire practice is sold to one or more lawyers or law firms;

(c) The seller gives written notice to each of the seller's clients regarding:(1) the proposed sale;(2) the client's right to retain other counsel or …

Is it OK to Practice Law After Selling a Law Firm?

Practicing Law After Selling a Law Firm

Read this interesting ABA ethics opinion about Rule 1.17 and a lawyer's ability to practice law after selling a law practice. What are the limitations on a lawyer practicing after selling a law firm? More than one attorney has asked the question, "Is it OK to practice law after selling a law firm?" The answer is more complex than one might expect. Ethics counsel should be consulted for guidance.

An interesting ABA Journal article addressed this issue when discussing a lawyer's ability to "practice law" after selling a law practice when the "practicing" is limited to assisting in the transition. Click the link to read more.

https://www.abajournal.com/magazine/article/ethics_opinion_its_ok_to_practice_after_selling_a_law_practice_to_assist. Other blog posts written by lawyer Robert Schaller of the Schaller Law Firm are posted at https://lawpracticesale.com/blog/.

Is Selling Your Law Firm Your Exit Strategy?

Law Firm Exit Strategy

AboveTheLaw.com recently posted an interesting article about a lawyer's need for an exit strategy when planning the sale of a law firm. A happy ending would be the successful sale of the seller's law practice to the highest bidder. But an exit strategy is essential in the event of a worse-case scenario. Read the post and learn more about succession planning. https://abovethelaw.com. The exact page is abovethelaw.com/2021/08/what-is-your-exit-strategy.

More blog posts by attorney Robert Schaller of the Schaller Law Firm can be found at https://lawpracticesale.com/blog/.