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As we have explored throughout this series, the sale of a law practice is now ethically permissible in New York. Rule 1.17 of the Rules of Professional Conduct expressly allows lawyers to sell a practice, including goodwill. Yet despite that change, relatively few small and suburban firm owners actually sell their firms. Instead, many attorneys simply close their doors when they retire. That raises an obvious question. Why is nobody selling their practice? Part of the answer

As we continue our discussion of succession planning, one theme consistently rises to the surface. Clients, not contracts or valuations, ultimately determine whether a transition succeeds. A firm may have strong financials and a well-structured plan, but if clients do not stay, much of that value disappears. At the outset, it is important to remember a basic ethical principle. Clients are free to choose their attorney. They cannot be compelled to remain with a firm, and t

Much of the discussion around succession planning focuses on the mechanics and value of an exit. Those issues are critical. But there is another dimension of exit planning that receives far less attention and can be just as consequential. That is the emotional side of leaving a practice. Lawyers are deeply identity-driven professionals. For many of us, the practice of law is not just what we do. It is who we are. When it comes time to step back, that identity shift can

As we continue examining what makes a law firm truly valuable and how that value can be protected for an eventual transition, it becomes clear that pricing strategy plays an important role. Succession planning depends on building a business model that is predictable, transferable, and appealing to a successor. One way to support that goal is to reduce reliance on the traditional billable hour. Hourly billing ties a firm’s income directly to the personal output of its lawyer

“Eat what you kill.” The phrase gets tossed around law firms as if it guarantees fairness and prosperity. The concept, that you’re rewarded purely for the business you bring in, has an undeniable appeal, especially to entrepreneurial lawyers. But when recruiters come calling with promises of higher compensation, better support, and fewer headaches, it’s worth pausing to ask what you’d be giving up. Over the years, I’ve been approached by multiple firms of varying sizes, some

As we have seen in our discussions of succession, the single biggest obstacle is often not money or clients, but people. For suburban and small firms, the challenge of hiring quality lawyers is especially acute. In many smaller markets, candidates are reluctant to leave the higher salaries and perceived prestige of large Manhattan or Westchester firms. Geography plays a role, too, as commuting to Rockland can be difficult. As a result, small Rockland firms often find them

Before we can meaningfully talk about what a law firm is worth, or how to plan for a successful exit, we need to remind ourselves of the...

With my continuing focus on building my law firm’s value, I think it’s important to know how that value will be calculated. During our...

As I continue to focus on building firm value, to reap the benefits now and on exit, I must resist my luddite tendencies and embrace...

In my continuing search for ways to enhance the value of my firm to get the benefits both now and when I exit, another element that I am...