Senior Attorney Match Podcast

How to Sell a Law Practice Post-2020

In the State of the Market episode, “How to Sell a Law Practice Post-2020,” Senior Attorney Match’s Jeremy E. Poock, Esq. and Scott R. Loring, CPCC, address:

• The 3 Options for Selling a Law Practice Post-2020
• The 4 Components to Valuing a Law Practice
• The Ongoing Shift in Legal Consumer Behavior Post-2020
• The Key Factors that Impact Revenues for Senior Attorneys (Ages 55-75)

Poock and Loring discuss how a Senior Attorney’s “Trust Transfer” of clients and referral sources presents “1 + 1 = 7” business development opportunities to Growing Law Firms.

They also discuss how rising competition for legal services by Growing Law Firms that adopt post-2020 Multi-Channel Digital Marketing strategies will continue impacting new client revenues for Senior Attorneys.

The Importance of Law Firm Integration Consulting during the First 180 Days

In this episode, Margaret Burke of Kolibri Law Support Solutions, discusses the importance of Integration Consulting during the first 30, 60, 90, and 180 days after Senior Attorneys join Growing Law Firms.

Burke, who has previously served as CEO of a mid-sized law firm and holds a MBA, Bachelor of Science in Accounting, and is a Certified Professional Coach, assists law firm leaders with: (i) Law firm management; (ii) Financial management; (iii) Human capital management; (iv) Operations Management; and (v) Sales and marketing management.

As Burke states, “Our goal is to free-up the attorneys so they can focus on what they do best and what they enjoy doing.”

When addressing the benefits of Integration Consulting during the first 180 days, Burke and Poock advise Senior Attorneys and Growing Law Firms as follows:

Days 1 – 30: Focus on “meet-and-greets,” social events, assigning mentors, and explaining new processes to the Senior Attorneys joining a new firm.

Days 30 – 60: Prepare to jointly contact and meet with a Senior Attorney’s clients and referral sources.
As Burke states: “This is also a great time to recognize that perhaps something that was in the original plan [needs] a small adjustment.”

Days 60 – 90: “This is a time to really re-focus, be open, [and] make changes that can be made. If they cannot be made, discuss why,” Burke says.

Days 90 – 180: Here, Poock adds that during Days 90 – 180, the parties learn to trust each other, where they develop that trust by listening and learning from each other.

Addressing the value of an Integration Consultant during the first 180 days, Burke states: “[E]valuation and [the] opportunity for people to meet and discuss things . . . with the help of a third party is critical to move forward and reach the goals that everyone set when they originally decided to join each other.”

Valuing a Law Practice - The Importance of Synergy Value

In this episode, Mark S. Gottlieb, CPA/ABV/CFF, ASA, CVA, CBA, MST of MSG Accountants, Consultants & Business Valuators (www.msgcpa.com) discusses valuing law firms.

In response to the “What is My Law Practice Worth” question, Gottlieb explains that valuing a law practice depends on the size of a practice, namely, a sole proprietorship, a medium-sized firm, or a large law firm.

For small law practices, Gottlieb explains that valuation depends upon the following question: “What is the amount of cash flow available to the owner both before and after officer’s compensation, and what is the risk associated with earning that revenue stream?”

In the context of succession planning for lawyers, Poock points out that Growing Law Firms pay for the value of a Senior Attorney’s practice via fee sharing derived from a Senior Attorney’s clients and referral sources, payable over a defined period of time.

Gottlieb defines that value as: “Synergy Value.”

As Gottlieb states: “Growth is now primarily coming from acquisition, not from organic growth.”

The Role of Life Insurance in Succession Planning for Lawyers

In this episode, David F. Keefe III, CLU, ChFC (linkedin.com/in/davidfkeefe) of 4-Point Financial (www.4-pointfinancial.com) addresses the role of life insurance in succession planning for lawyers. As a life insurance advisor who specializes in understanding the value of Human Capital, David addresses the importance of life insurance for: (i) Law firm partners as business owners; (ii) Senior Attorneys who join Growing Law Firms per a term of years earnout; and (iii) Senior Attorneys who do not yet have a successor and for whom life insurance can serve as a phantom buyer. As Poock points out, attorneys who have not fulfilled a succession plan yet should especially consider including life insurance as part of their business planning strategy.

The Opportunities That Client & Referral Source Lists Present to Growing Law Firms

In this episode, Jeremy E. Poock, Esq. and Jared D. Correia, Esq., Founder and CEO of Red Cave Law Firm Consulting (www.redcavelegal.com), discuss the importance and opportunities attributable to a Senior Attorney’s client list and referral source list. As Poock explains, valuing a law practice consists of 4 elements (a) Client list; (b) Referral Source list; (c) Good Will; and (d) Subject matter knowledge. Correia, who has consulted with 4,000+ law firms to become more effective businesses, points out that client lists present tangible, business generation opportunities to Growing Law Firms. Correia also explains best practices for managing client and referral source lists, including (1) Housing the client and referral source lists within marketing automation services (egs. CRM software, Mailchimp, etc.); (2) Establishing marketing and re-marketing protocols; and (3) Tracking responsiveness to marketing campaigns.

Top 5 Reasons Why a Commercial Lease Should Not Delay Succession Planning for Senior Attorneys

In this episode, Jeremy E. Poock, Esq. and Scott Loring address the top 5 reasons why a commercial lease should not delay succession planning for Senior Attorneys: (1) Avoid the “Sunk Cost Fallacy,” which Loring defines for listeners as when we continue an action because of our past decisions, rather than a rational choice of what will maximize our utility at this present time; (2) Recognize that a “Random Tuesday Event” could occur before the end of the lease term; (3) A successor may have interest to assume the lease; (4) Options for mitigation; and (5) The risks that maintaining the Status Quo presents to the value of a Senior Attorney’s practice. Poock also points out that Growing Law Firms view a Senior Attorney’s commercial lease as a cost of doing business. In the context of the influx of clients and referral sources that a Senior Attorney’s practice presents, Growing Law Firms often say, “Please, put that on the table for us to discuss and negotiate.”

Episode 23: 2 of 2: For Sale by Owner (FSBO) - Perspectives from Two National Leaders in Business Brokerage

In Part Two of the FSBO episode, business brokers, Gary Rayberg, President of ROI Corporation (www.roibusinessbrokers.com) and Cress V. Diglio, Managing Partner of Calder Associates (www.calderassociates.com), address FSBO’s in the context of: (i) A friendly competitor; and (2) An internal sale. When considering a friendly competitor, Diglio and Rayberg explain how a business broker can expedite the sale process, as well as identify when a friendly competitor lacks a genuine interest to purchase the Seller’s business, or worse, may seek a Seller’s competitive information. Poock adds that introducing additional buyers for a Seller to consider beyond a familiar, friendly competitor also provides value to Sellers. For internal sales, Poock explains the value of structuring, valuing, and serving as an emotional buffer that intermediaries provide. As Diglio points out, business brokers who structure internal sales deliver a “feel good story all the way around” by achieving the sale of a Seller’s business to a key employee or family member who can continue running the company.

Episode 22: 1 of 2: For Sale by Owner (FSBO) - Perspectives from Two National Leaders in Business Brokerage

In this two-part episode, two national leaders in business brokerage, Gary Rayberg, President of ROI Corporation (www.roibusinessbrokers.com) and Cress V. Diglio, Managing Partner of Calder Associates (www.calderassociates.com), discuss For Sale by Owner – FSBO. In Part One, Rayberg and Diglio define FSBO and address the risks that FSBO presents to Sellers. When comparing selling a business via FSBO to working with a business broker, Rayberg identifies the amount of work involved with selling a business, including valuing, marketing, and allocating 150-300+ hours from Listing to Closing. Diglio emphasizes the benefits of an intermediary’s sales process, including the importance of a valuation. As Diglio states, “The valuation sets an expectation.” Rayberg adds, “Having someone that is knowledgeable about valuation and also deal structure can help someone who is selling understand if they are getting a good deal.”

Episode 20. Senior Attorney Match's Integration Consulting Explained

In this episode, Attorney Jeremy E. Poock, Esq. and Scott Loring of Cooperative Coaching & Mediation discuss “Integration Consulting” the fourth step in Senior Attorney Match’s 4-step process for designing and implementing succession plans for Senior Attorneys. Poock and Loring discuss Integration Consulting as it applies to a Senior Attorney joining a growing law firm. During Integration Consulting, Senior Attorney Match continues its role as intermediary by assisting the parties to: (i) Build trust among each other during their first 6-12 months practicing together; and (ii) Keep their eyes on the proverbial ball by focusing on fulfilling the terms of the agreement that they negotiated during Implementation. As Poock explains, the Integration Consultant makes the process of integrating a Senior Attorney’s practice into a growing law firm “so much smoother, so much more effective, and ultimately, much more successful for the Senior Attorney, the growing law firm, and really, the clients who benefit by these parties having come together.”

 

Episode 19. Senior Attorney Match's Implementation Explained

In this episode, Attorney Jeremy E. Poock, Esq. and Scott Loring of Cooperative Coaching & Mediation discuss “Implementation,” the third step in Senior Attorney Match’s 4-step process for designing and implementing succession plans for Senior Attorneys. In Implementation, Senior Attorney Match implements upon the succession planning option determined during the Next Step Process. Typically, that option involves pursuing a growing law firm. Implementation involves 4 phases: (1) Identifying growing law firms for Senior Attorneys to consider; (2) Serving as the intermediary to contact growing law firms that Senior Attorney Match identifies for its clients; (3) Conducting and leading negotiations between a Senior Attorney and a growing law firm; and (4) Overseeing the drafting of an agreement between the parties to document the terms that Senior Attorney Match assists its clients to negotiate. As Poock states, “At the end of day, our goal is to make sure that our clients are getting the right successor for their law practice.”