Want to Sell Your Legal Practice?

When considering the sale of your legal practice it is important to ensure that you are completely aware of the potential market-exit avenues that are available to you. Whether you are in the pursuit of retirement or looking for a change in direction and seeking initial capital for a new business venture, undergoing a comprehensive research campaign can often be the differentiating factor between achieving an adequate sale price or attaining a market premium for your practice.

Research
The primary stage of your research will require a degree of introspection; what are you trying to achieve through the sale? Are you looking to solely maximise your return for years of hard work and dedication, or do you wish to see your business continue the path you have forged and maintain an identical trading ethos?

Whatever your reason is for the sale, it is always highly beneficial to prepare for the sale far in advance of your planned departure date. Whilst the average completion time for a legal practice varies greatly depending on size, speciality, organisational structure and location, most sales require a minimum of 6 months for a successful completion. As such, it is pertinent to commence your sales process ahead of time.

Expert Advice
Early within the sales process you will need to instruct a business broker with experience within the legal sector, as well as an external solicitor with specialities in the acquisition and disposal of legal practices. Both parties will take an objective stance towards the sale of your business and advise you on what is best for the business sale, a matter you will understandably have a substantial emotional investment within.

Finding a Buyer
Your business broker will be responsible for getting your business seen by a vast assortment of buyers, including market entrants and industry operators looking to either realise their expansion plans into new geographical areas, or offer additional services that your firm may specialise in. In addition, they will undertake a market appraisal of your business where you will be provided a target price that your business will realistically achieve.

Market Appraisal
Within a market appraisal, and later throughout the due diligence process, your key financial documentation will be liable to undergo intense scrutiny in order to ensure they are accurate and realistic. Therefore, it is important to prepare your key financial documents and pre-empt any issues that an interested party may raise, including writing-off any irrecoverable fees and presenting a feasible forecast model for future fees.

If you are now considering the sale of your legal practice and would like to seek further guidance, please do not hesitate to get in contact with a member of the experienced Kings Professional team and they will be delighted to assist you.