Attorney Robert Schaller recently recommended an interesting article on a law practice for sale published by Lawyers Mutual Liability Insurance Company of North Carolina. To read the article click the link. Law practices 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 another firm and subsequent lawyer retirement, outright purchase, association or junior partner buyout, or asset purchase? Sellers and buyers are advised to set reasonable objections for the transaction. The author also discusses the need for a transition plan and provides goals that should be considered by the players:
• Better prepare practices for change
• Promote lawyer focus on client value
• Preserve client and practice goodwill
• Provide alternative growth options
• Provide exit strategies
• Continuous service to client
• Promote mentorship
• Increase or expedite retirement options
Finally, the author alerts the buyers and sellers to create a transition team to facilitate a smooth closing. The transition team could include a transactional attorney, CPA, financial planner, valuation expert, insurance advisor, and others.
Read about maximizing retirement benefits for retiring attorneys and selling a practice using an online marketplace like www.LawPracticeSale.com and learn more about sale of a law practice.