The Complexities of Buying and Selling Law Firms with Tom Lenfestey

Aug 6, 2024

Tom Lenfestey, founder and CEO of the Law Practice Exchange, discusses the vibrant market for buying and selling law firms. He details why some firms are ripe for sale while others aren't, emphasizing the importance of solid processes and updated technology. Tom highlights the emotional hurdles that can derail deals, urging a mindset shift for law firm owners. He offers insights into valuing firms, the key role of employees, and provides practical book recommendations to help lawyers navigate these complex transitions.

Ask episode

Chapters

Transcript

Episode notes

Intro

00:00 • 2min

Navigating Law Firm Transitions

01:39 • 14min

Navigating Law Firm Transactions

15:26 • 8min

Navigating Employee Dynamics in Law Firm Transitions

23:38 • 7min

Navigating the Law Firm Marketplace: Tips for Buyers and Sellers

30:17 • 4min

Finding Balance: Tips on Life and Law Firm Success

33:48 • 2min

Unlocking Learning Opportunities and Entrepreneurial Growth

35:22 • 2min

Watch the YouTube version of this episode HERE

Are you a law firm owner who is thinking about buying or selling a firm? In this episode of the Maximum Lawyer podcast, Jim and Tyson are joined by Tom Lenfestey, founder and CEO of the Law Practice Exchange. Tom discusses the bustling market for buying and selling law firms, particularly in the personal injury sector.

Tom shares his insights on acquisitions and why some firms are ready while others are not. Not every firm will be fit to be bought or sold. An ideal firm will be on the market for purchase when it has gone through the necessary changes to become successful. If a firm is bringing in good business, lawyers are making a good salary, processes are ironed out and in place and the technology is up to date, potential buyers will be calling.

In the buying and selling of firms, deals can fall a part. In the legal space, deals fall through due to the emotions of both the buyer and seller as well as the fear to sell a firm that has been in business for a long time. For lawyers, it is natural to think about the ways in which something won’t work. But, that creativity can be used to think about the ways in which it can. That shift in mindset can really allow law firm owners to be confident in closing a deal to sell.

Listen in to learn more!

Jim's Hack: Read the book “Build to Sell" which will have you get prepared to sell a firm.

Tom’s Tip: Read the book “Die with Zero”, which goes through how to control your life and experiences. It helps put perspective on why you are here and what your purpose is.

Tyson's Tip: Look into the app EDX, which gives you free courses from universities and colleges across the USA.

10:19 Discussion on the ideal size and caseload for a law firm to be ripe for acquisition.

11:44 The impact of emotions and reasonableness in deal dynamics

18:29 The impact of emotions and reasonableness on deal success

Tune in to today’s episode and checkout the full show notes here.

Connect with Tom: