Selling a law firm is challenging, stressful, heart breaking and sometimes, not worth the hassle. Withthat said, if you’ve lost motivation or you just don’t have the heart to carry on taking your law firm forward any longer, it certainly needs to be considered. If you’re in one of those situations and you’re looking to offload your pride and joy, consider following the below steps to ensure you get the best deal for all your hard work.
What Does the Futures of Your Clients Look Like
While a law firm is valued in terms of its current clients and, of course, property, employees, and
partnerships, there’s nothing wrong in valuing your law firm based on the future of your current
clients. If you think one of your clients has a big future ahead of them, it could mean that revenues shoot through the roof. So, it’s up to you to decide whether a client has a decent future ahead of them, just so you can get the most from the sale. Many law practices overlook this tip, but it’s the difference in a higher or lower valuation of a law firm, according to Lawbiz, experts at selling law practices.
Plan Your Sale in Advance
Whether you’ve lost motivation or you just can’t see a future for your business, always plan to sell at least a few years before you do. Doing this has its benefits. Firstly, it’ll give you a chance to change your mind if you suddenly have the urge to take the business forward again. Secondly, your client’s businesses could grow and that could provide financial appeal to staying in business. Of course, many other benefits come from waiting, but it’s definitely something worth doing as you never know what can change between now and then.
Do You Really Need to Sell?
A sale isn’t your only option on the cards; the opportunity to merge with another company could
well be the best thing for your future. This is an attractive approach for those law firms who have
taken on larger clients and need more resources, or those that have simply run out of money and
can’t cater for the clients they already have. Merging with another law firm does have many
benefits, so you should consider your options before you sell your firm and regret it afterward.
Always Look for an International Buyer
It’s recommended to sell your law firm to someone out of the area, or even out of the country
completely. If the public catches wind that a law firm is selling, it can often put many businesses off hiring their services and, eventually, it loses lots of its value. Try to find a non-local buyer to keep the sale low-key and that will hopefully keep its value intact.
There’s plenty you can do to keep your law firm’s value intact. The above are just some of the
mandatory tips to follow along the way. The best tip you can take advantage of when selling is to
just wait for a year or two to see if anything changes; that’ll make it much easier to sell when the time does eventually come around again.
Bio: James Daniels is a freelance writer, business enthusiast, a bit of a tech buff, and an overall geek. He is also an avid reader, who can while away hours reading and knowing about the latest gadgets and tech, whilst offering views and opinions on these topics.