Best Practice Tips: Gradually Selling a Law Practice to an Associate
Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. I am the owner of an elder law firm in Phoenix, Arizona. I have one full-time associate, one part-time associate, and three staff members. I am earning around $300,000 a year from the practice and my full-time associate’s salary is $100,000 a year. I am 60 years old and would like to retire and be out of the practice in five years. I would like to begin phasing down and working part time in the next year or two. My full-time associate has been with the firm for 10 years. I feel that I should be entitled to some sweat equity from the practice in the form of retirement compensation or buy-out. With this said I would prefer that my practice “stay in the family” and be sold to my associate rather than selling my practice to an outside buyer. I would appreciate your suggestions.
The Illinois State Bar Association’s Lawyer Finder Service provides referrals to local lawyers Mondays through Fridays. The Service makes referrals in a number of areas of law. For the month of October 2018 there were more than 800 referrals given.
