Buying a practice

Step 4

It is often said that small law firms have no value. This is just not true. What is true is that badly organised small law firms have little value, just the same as any other badly run business. However, a well organised business, and a well organised law firm, does have value.

Many small law firms are owned by so called 'baby boomer' lawyers approaching retirement who have not made a succession plan and have no exit strategy. Often they have a significant clientele, but have no idea how to capitalise on them. As a result you can buy them cheaply – it will often cost far less than trying to build your own clientele from scratch.

This is where the entrepreneurial opportunity lies.

The valuations of Facebook and WhatsApp have illustrated the value of lists of names. Every law firm of some standing has a list of names, however, it is probably not well organised - this provides an entrepreneurial opportunity to acquire clients cheaply and capitalise on them by organising the firm well.

It will often make sense to purchase a practice and keep the seller on in a consultant capacity to extract the maximum goodwill from the purchase.

There is in all probability a practice near you that is for sale, you just have to ask about. However, if you can't find anything, here are links to two reputable companies that provide broking services for law firms.

Step 5

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