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Biggest problem with being solo: hard to sell practice
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Date: October 22nd, 2017 10:28 AM Author: Onyx point Going to probably turn a profit (before taxes) of around $225k this year. If this was some other small business making $225k in profit, I could probably sell it for 2-3x earnings, escape law, and move on to something else. But because it's a law firm, it's almost impossible to sell for any decent amount. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500920) |
Date: October 22nd, 2017 10:30 AM Author: Slap-happy Massive Stag Film You can't sell any sole proprietor business for shit (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500933) |
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Date: October 22nd, 2017 10:31 AM Author: Multi-colored Trust Fund so lawyers have no inherent value? odd case! (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500938) |
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Date: October 22nd, 2017 10:32 AM Author: wild bull headed kitchen (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500940) |
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Date: October 22nd, 2017 10:33 AM Author: Onyx point Scum of the earth, really. I hate being a lawyer in part because I hate every lawyer I meet and have to deal with. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500948) |
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Date: October 22nd, 2017 1:48 PM Author: Chest-beating Marvelous Piazza Actually, OP's problem is that by far the most valuable asset of the business (a lawyer) isn't being sold with it. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502312) |
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Date: October 22nd, 2017 1:54 PM Author: Internet-worthy odious space (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502347) |
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Date: October 22nd, 2017 2:01 PM Author: lascivious menage (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502394) |
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Date: October 23rd, 2017 12:15 PM Author: Motley weed whacker property cr. ljl at dbg's "business analysis." (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34509004) |
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Date: October 22nd, 2017 10:32 AM Author: talented doobsian becky cruise ship The thing that makes it relatively easy to start and grow a solo practice is the same thing that makes it hard to sell: lack of a barrier to entry. Obviously you need a law degree, but it's not like starting a factory and needing a bunch of machinery or whatever. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500943) |
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Date: October 22nd, 2017 10:36 AM Author: Cruel-hearted field My accountant aunt did not have this problem. When she was set to retire her biggest problem was getting the buyer to go from 1.8 million to her 2 million figure. Ended up selling it for 1.95. I did the closing and walked away with -- $2500. LJL at my life. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34500979) |
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Date: October 22nd, 2017 12:18 PM Author: buff insane stain No sole prop which requires constant elbow grease is gonna go for 3x bro. For example i can tell you that solo accounting firm go for 0.8x to 1.0x RETAINED billings. Your just being unrealistic unless yoyr earnings number nets out the effective labour cost of the sole prop (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34501658) |
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Date: October 22nd, 2017 1:42 PM Author: Onyx point I'm not disagreeing. You're absolutely right. I'm just saying I should have built a different business rather than a law firm because there's no exit strategy here. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502251) |
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Date: October 22nd, 2017 1:44 PM Author: Peach boyish juggernaut gaming laptop Just include yourself in the deal as chattel (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502275) |
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Date: October 22nd, 2017 1:54 PM Author: Onyx point (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502344) |
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Date: October 22nd, 2017 2:02 PM Author: lascivious menage (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502398) |
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Date: October 23rd, 2017 1:05 PM Author: hideous library (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34509345) |
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Date: October 22nd, 2017 1:59 PM Author: Chest-beating Marvelous Piazza You want to extract economic benefit from this and get out of law, you'll be much better off bringing in a partner and/or associate(s) to do the work for you. There are plenty of good attorneys who don't have much of a book. You could have a partner who gets paid from his collections and buys the equity from you year by year out of collections. You can probably eventually make MORE than 2x-3x as long as you're willing to maintain a token participation for a while. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502374) |
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Date: October 22nd, 2017 2:01 PM Author: Onyx point 180, been playing around with this or pitching midlaw firms on merging and making me a partner. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502395) |
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Date: October 22nd, 2017 2:05 PM Author: lascivious menage cr, your berst move is to bring in fungible billing units to grind under you and you collect thier profits. you dont make money by billing hourly, you make money by making other people bill hourly and collecting thier money (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502421) |
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Date: October 23rd, 2017 10:07 AM Author: naked shrine persian (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34508395) |
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Date: October 23rd, 2017 1:06 PM Author: hideous library (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34509351) |
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Date: October 22nd, 2017 2:02 PM Author: soggy principal's office YOU are the business (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34502402) |
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Date: October 23rd, 2017 10:10 AM Author: naked shrine persian this is true of every small business - a ton of their value is in the knowledge and effort of the owners. I've seen this with two family friends recently. One pair of brothers tried to sell a well-established construction subcontractor business (probably 30 employees?). The buyers said OK, but both of you have to sign 5 year contracts as salaried managers. Another family had a pizzeria; no one would pay them more than the value of the ovens. Small business owners are the business. (http://www.autoadmit.com/thread.php?thread_id=3771344&forum_id=2#34508411) |