Cash & Finances - LawBizBlog http://www.lawbizblog.com/articles/buying-selling-a-practice/ en-us Copyright 2010 Sat, 20 Dec 2008 16:21:07 -0500 Wed, 16 Jun 2010 18:14:25 -0500 http://www.movabletype.org/?v=3.34 http://blogs.law.harvard.edu/tech/rss Predictions from 2006 coming true? In an email today, one of my readers said:   "Perusing your archives, I came across your March 2006 Newsletter (see article 2 C) with the title "What do you really do as a Lawyer" in which you talk about GM not listening to consumers and ending with words "predicting" ". . . GM's bankruptcy."   How prescient you were (and hopefully "are")." 
 
What I specifically said was:  "What do you really do as a lawyer? You don't practice law, you serve clients. General Motors, once the largest corporation in the world, lost sight of the fact that its real purpose was serving customers, not making cars. Before too long we may read about GM's bankruptcy." 
 
The reference here was comparing GM with the service that lawyers need to provide in order to serve clients and grow their practice.  My comments then are still valid today. Except that now the prospect of a bankruptcy is real ... In fact, one might say that the   (though not in the Court) has already taken place.
 
Thanks, Ross, for going back to see the future.

]]> http://www.lawbizblog.com/2008/12/articles/management/predictions-from-2006-coming-true/ http://www.lawbizblog.com/2008/12/articles/management/predictions-from-2006-coming-true/ Cash & FinancesManagement Sat, 20 Dec 2008 16:21:07 -0500 Ed Purchase price for sale of law practice In discussing the value of his law practice, my client mentioned the figure given to him by his financial planner, a number designed to assure his standard of living. This was the number he wants for the purchase price of his practice.  I suggested that the two numbers were unrelated ... and that the value of the practice may be more or less than the number his financial planner wanted for his style of life.

This caused us to return to the reason he wants to sell his practice and the time frame for achieving a sale. The more urgent is the desire to sell, the lower will be the price; the less urgency, the greater will be the price. Neither number has much to do with what it will take to reach and maintain your desired standard of living. Such a number may impact your decision to complete a transaction, but really has nothing to do with an objective valuation of the practice.

 

]]> http://www.lawbizblog.com/2008/11/articles/buying-selling-a-practice/purchase-price-for-sale-of-law-practice/ http://www.lawbizblog.com/2008/11/articles/buying-selling-a-practice/purchase-price-for-sale-of-law-practice/ Buying & Selling a PracticeCash & FinancesManagement Tue, 04 Nov 2008 11:20:16 -0500 Ed