Compound Interest: Hang Onto Your Law Firm Equity

If you’re a solo attorney, or a small law firm owner, acquiring a partner (or, partners), can sound really appealing.  You won’t have to do as much.  Somebody shares the burden with you.  All good, right?  Well, maybe not. 

 

Not every partnership works – they all break up, eventually.  And, to take on a partner (in most cases), you’ve got to give up some equity in your business – which generally means that you’re going to reduce the control you have over your own organization, while simultaneously decreasing your value proposition, in it. 


 

In sum: you want to be careful, when giving up equity in your law firm, because it goes quick!  When you’re selecting a partner, you want to make sure that that person is a fit with your culture and values; but, it also helps if you can find someone who has an alternate skillset to your own – if you’re good at managing cases, maybe you can find someone who is better at overseeing operations. 

 

And, it’s not like you need to offer equity to a partner . . . there’s always the option to bring on a non-equity partner: which can provide you with the benefits you seek around a shared burden, without having to chip away at your ownership interest. 

 

. . . 

 

If you’re thinking about a partnership, and you want to run the potential arrangement by a third party – just contact us!  We can help! 

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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