Asset Management: How Your Law Firm Pays Off in the End

Most solo and small firm attorneys think of their law firms as a salary replacement for a full-time law firm job, with some upside: both on income, and freedom.  But, that’s it.  Lots of lawyers are looking to run out the clock on their practice, and then ride off into the sunset – or, work until they die.  I know I’d prefer the former; and, if you do, too – why not ride off into the sunset with some loot, like the hero (or villain), in a Western movie? 



Now, for sure, your law firm is a valuable asset to you throughout your career.  But, a law firm can be a valuable asset for sale, as well – even if many attorneys never consider that option.  A whole host of attorneys are out there optimizing their law practices for current revenue – but, far fewer of those lawyers are looking to create a saleable asset.  Yet, that can become a significant chunk of revenue, for when you retire, or if you decide to move on + try something new, one day.  Your law firm could fund your next venture. 

 

So, law firms will sell for 1x gross annual revenue – usually an average of the last e years.  I mean, that’s still pretty good – but, you can potentially increase that conversion metric, by implementing systems, focusing on marketing and considering revised pricing models. 

 

Also, while currently your only potential buyers for your law firm are other lawyers, the specter of alternative business structures means that that market could expand. 

 

. . .

If you want to talk about the future value of your law practice, just reach out! 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, National Creditors' Bar Association members have access to experienced law practice management consultants at a special discount rate.

To get started, visit Red Cave's NCBA landing page, and start running your law practice like a business.

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