3 Law Firm Sale Trends in 2025 - From the Poock’s Post Segment of Ep. 20 of the Ask the Law Firm Seller Show

During Ep. 20 of the Ask the Law Firm Seller Show, Jeremy E. Poock, Esq. shares the following Poock’s Post:

3 Law Firm Sale Trends in 2025

The 3 law firm sale trends in 2025 are as follows:

Trend No 1. for Law Firm Sales in 2025: Growing Law Firms will continue purchasing Senior Attorney-led Firms because Growing Law Firms need the following 3 resources that Senior Attorney-led firms have: (a) Access to new clients from Books of Business developed over the course of decades; (b) An experienced workforce, consisting of lawyers, paralegals, and legal assistants; and (c) Treasure chests of digital content available from subject matter knowledge gained in multiple practice areas.

Trend No. 2 for Law Firm Sales in 2025: Law firms that invest in Multi-Channel Digital Marketing will experience the following two-fold benefits: (a) Continued business development expansion, and its accompanying increase in annual revenues, by attracting the attention of today’s post-2020 clients who search for lawyers and law firms digitally, as compared to the pre-Google Word of Mouth Era; and (b) A transition in law firm value from the good will attributable to particular Rainmaker attorneys to Brand Equity value as the ROI from investing in Multi-Channel Digital Marketing.

Trend No. 3 for Law Firm Sales in 2025: Law Firm Sales 2.0 has arrived! The distinction between Law Firm Sales 1.0 and 2.0 is as follows:

The consideration in Law Firm Sales 1.0 depends entirely upon earnout payments in which selling law firms receive a percentage of revenues attributable to collections from the defined Book of Business of a selling law firm, payable over a negotiated period of time. Stated differently, Law Firm Sales 1.0 involves 100% seller financing due to the risk that a selling law firm’s Book of Business will not generate similar client revenues for a purchasing law firm, post-sale.

By contrast, the consideration in Law Firm Sales 2.0 consists of the following 2 payments: (a) The same earnout payment terms as Law Firm Sales 1.0; plus (b) An upfront payment, attributable to a selling law firm’s Brand Equity and Digital Value, as evidenced by data analytics upon which a purchasing firm, as well as a bank, may rely when determining the upfront payment component of Law Firm Sales 2.0.