Smart Lawyers Position to Transition Why Earnouts Suck for Everyone Involved
In this episode, Victoria explores the concept of earnouts in relation to the sales of law firms while also drawing attention to the various pitfalls associated with these types of transactions. Throughout the discussion, she also examines alternative approaches to earnouts when looking to buy or sell a law firm.
Key Takeaways:
Defining Earnouts: Victoria explains the concept of earnouts and how earnouts tie the seller's compensation to the future performance of the business.
Drawbacks of Earnouts: Victoria and Jen explore the negative implications of earnouts for both buyers and sellers.
Alternatives to Earnouts: The hosts propose alternatives to earnouts, such as negotiating a set price based on the current value of the business. They discuss structured payment options over time without tying the seller to the future performance.
About Victoria Collier
Victoria Collier, JD, CELA, CEPA, CVBA, is a highly accomplished professional who founded The Elder & Disability Law Firm of Victoria L. Collier, PC, in 2003, achieving consistent average gross revenue of $1.5M for five consecutive years before successfully selling the firm in 2020. Since 2008, Victoria has been a trusted consultant, providing valuable guidance to law firm owners on developing specific practice areas within their existing firms and enhancing overall firm value.
As a Certified Exit Planning Advisor and Certified Value Builder Advisor, Victoria specializes in advising law firm owners on strategic positioning and transitioning their firms, facilitating a smooth transition into life after law.
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