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Law Practice Management News
Ideas for Lawyers and Managers That Dare To Be Different February 2014

in this issue

Law Firm Non-Equity Partners - Compensation and Perks

Law Firm Geographic Expansion - Additional Offices

Solo/Small Firm Question of the Month - Law Firm Succession - Is There any Real Future Value in My Solo Practice?

Download Our Profitability Checklist

Looking to Sell or Merge Your Practice - Let Us Know


 
Johns Photo

John W. Olmstead
MBA, Ph.D, CMC

Greetings!

Welcome to Olmstead & Associates Law Practice News, a law practice management resource for practicing attorneys, managing partners, administrators, and others that must keep updated on all aspects of law firm management.

Our Law Practice Management E-Newsletter is distributed on the first Wednesday of each month. Look for it and send us your emails with your ideas for topics that you would like covered. I wish to thank those who take the time to email me with their thoughts and comments. I encourage our readers to do so.

  • We represent a firm in Chicago Southwest Suburbs looking for solo/small firm acquisition opportunities in Chicago suburbs and Central Illinois.
  • We represent a business law firm in Houston, Texas looking to merge with another firm.
  • We represent an estate planning firm in Chicago looking to merge or sell practice.
  • We represent an estate planning firm in Peoria, Illinois area looking to sell practice.
  • We represent a small practice owner Denver, Colorado, looking to transition out of the practice.
Interested parties should contact John Olmstead via e-mail at [email protected].


  • Law Firm Non-Equity Partners - Compensation and Perks
  • Recently several of our clients have asked us about our thoughts concerning implementing non-equity partnership tiers and how they should handle compensation and other perks.

    I believe that the non-equity partnership tier should be meaningful and distinctive - both internally and externally. Consider the following:

    Read on . . .
  • Law Firm Geographic Expansion - Additional Offices
  • Many small law firm are facing challenges hitting their revenue and profit targets. Some believe that they have saturated their home base market and are expanding into new geographical areas and opening satellite offices. Here are a few suggestions.

    . :

    Click here for our suggestions . . . .
  • Solo/Small Firm Question of the Month - Law Firm Succession - Is There any Real Future Value in My Solo Practice?
  • Question I am a 64 year old solo practitioner in Arlington, Virginia. There are no other attorneys in the firm - I have one legal assistant. My practice is concentrated in estate planning and estate administration. I have just started giving thought to retirement and what to do with my practice. I want to provide continuity for my clients, security for my employee, and salvage any sweat equity from my practice if there is even such a thing? Personally, I question whether there is any potential for receiving any value from the practice - I think when you are done - you are done? What are your thoughts?

    Answer: It all depends upon the practice, not waiting too long, and finding the right WHO. About a year ago I had this discussion with an owner of a practice and he held the position that when you are done - you are done. However, after we assisted him with a year-long hunt - he successfully sold his practice for a multiple of 1.0 times average of the last five years fee revenue with 85% paid at closing and the remainder paid out over three years.

    Another sole owner recently sold a practice for $50,000 at closing and 20% of gross practice revenue for five years paid when fees collected.

    So I believe if you don't wait too long and take the time to look for the right WHO - value from your sweat equity can be realized.

    However, if you don't do your homework and start early - you are right - when you are done - you are done.

  • Download Our Profitability Checklist
  • Are you looking for a quick and dirty checklist to use to review the profitability of your practice. Click below for a copy of our Law Practice Profitability Checkup.

    Click here to download ...
  • Looking to Sell or Merge Your Practice - Let Us Know
  • We frequently consult and work with law firm clients working on implementing succession strategies that involve the sale of a law practice, merging with another firm, or hiring lateral talent. If you are looking to join up with another firm keep us in mind. We will be posting confidential listings on our website in the near future.

  • FREE Guide to Law Firm Management Best Practices
  • Download a FREE copy of our Guide to Law Firm Management Best Practices.

    To learn more about Olmstead & Associates visit their web site at www.olmsteadassoc.com

    To View & Print the FREE Guide

    ::Phone 314-241-5665