Law firms are selling for real money, and private equity is now part of the buyer pool. In this Law Labs edition, Billie Tarascio digs into what law firms sell for, how deals get structured, and why more owners treat a sale as a growth move instead of a retirement plan.

Tom Lenfestey is the founder and CEO of The Law Practice Exchange, a marketplace and advisory firm for law firm sales, acquisitions, and succession planning. A practicing attorney, CPA, and law firm owner himself, Tom launched the platform in 2013 and has since closed over $350 million in law firm transactions. He contributes to Bloomberg Law, Law360, and Attorney at Work, and hosts The Exchange with Tom Lenfestey podcast.

Key takeaways:

- Learn why lawyer-to-lawyer deals still drive most sales under $10 million

- Understand how private equity reset law firm valuations in just two years

- See what a 2.5 to 3.5 multiple of adjusted net income means for your firm

- Find out why large personal injury firms command multiples up to 8x

- Discover how much cash sellers can expect at closing, and what changes it

- Compare earnouts, seller notes, and escrow structures in plain terms

- Plan for the 12 to 24 months most sellers stay on after closing

- Separate purchase price from compensation for post-sale legal work

- Hear why a 32-year-old owner sold as a growth strategy

- Watch for MSO buyers now targeting firms under $10 million

- Prepare for large-scale family law and estate planning firms to emerge

Chapters:

00:35 Introduction to Law Firm Exchange

03:25 Marketplace Dynamics and Private Advisory

06:10 Trends in Law Firm Transactions

09:16 The Role of Private Capital

11:54 Understanding Pricing Models

14:33 Transaction Structures and Seller Involvement

17:38 Shifts in Law Firm Ownership Perspectives

20:19 Future of Law Firm Transactions

Connect with Tom Lenfestey:

Website: https://www.thelawpracticeexchange.com

Email: tom@thelawpracticeexchange.com

LinkedIn (personal): https://www.linkedin.com/in/tomlenfestey/

LinkedIn (company): https://www.linkedin.com/company/the-law-practice-exchange/

Facebook: https://www.facebook.com/lawpracticeexchange/

Instagram: https://www.instagram.com/thelawpracticeexchange/