Selling a small law firm is indeed possible, but one must keep in mind that such businesses typically do not possess the same market value as tech companies, which often sell for significant multiples. More commonly, law firms are acquired for a sum equivalent to their gross annual revenue – a reflection of the transient nature of the firm’s revenue and clientele following the departure of the founding partner. However, with the right technology and system, there is potential to increase the value of the firm.
A recent conversation on the Non-Eventcast podcast with Jeremy Poock from Senior Attorney Match offered insight into the key factors you can manipulate to enhance your law firm’s sale price. Poock started his journey as a broker selling law firms, providing him with a unique perspective on the process.
Paucity of a digital presence can cause law firms to lose market share. To counter this, Jeremy suggests three principal strategies that can potentially optimize the digital visibility of your firm. An understanding of ‘synergy value’ in a law firm sale also emerged as an essential consideration. For instance, one attorney leveraged this aspect during the sale of her firm, effectively enhancing its perceived value.
The significance of a robust technological platform before selling a law firm was another point stressed by Poock. This includes incorporating a customer relationship management software (CRM), establishing systematic processes and workflows, and more. When utilized effectively, these measures can transform your law firm into an asset and let you extract the maximum value from it.
If you are interested in this topic, don’t miss this particular episode of the Non-Eventcast podcast. Alternatively, if you are looking for more information on CRMs, the Non-Event CRM Buyers Guide contains a plethora of up-to-date resources.