Sell a Company Niche Market Guides
Selling a Law Firm
The decision to sell your law firm isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
The economy isn't the only thing that is uncertain these days. So are law firm buyers, many of whom are waiting to pull the trigger on their next acquisition.
Most law firms are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. Although some law firm sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Broker vs. No Broker
Anyone who has ever sold a law firm has eventually needed to decide whether to use a business broker or go it alone. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your law firm much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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