Best Practice: Law firm merger – are we a suitable candidate?
Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. We have a two-partner firm in Columbus, Ohio. We have two staff members, and there are no other attorneys in the firm. We have been in practice together for 17 years. I am 62 and my partner is in his fifties. My practice is limited to intellectual property and my partner’s practice is limited to medical malpractice defense. Recently, as a result of lack of coverage, our unwillingness to hire associate attorneys, and our frustrations with dealing with management issues, we have decided that we would like to merge with a larger firm. However, we are concerned that our numbers may not be satisfactory. Our five-year averages are as follows:
- Gross Revenue – $500,000
- Expenses – $240,000
- Net Income – $260,000
Since we split the pot evenly we each made $130,000 on average. With these numbers are we a suitable candidate or are we just whistling in the wind? We would appreciate your thoughts.
The ISBA Marketing & Communications Committee invites you to march in the St. Patrick's Day Parade this Saturday, March 11. The Committee will be meeting at the Chicago Office, 20 S. Clark, 9th floor between 11 and 11:30 a.m. before marching over to the parade site on Columbus Drive. You may also meet the group at ISBA's parade spot No. 99. The parade kicks off at noon.
This is your last call to join the Honorable Russell W. Hartigan and his wife Susan on the 2017 ISBA President's Trip to Ireland September 8-17, 2017. This eight night tour of the emerald isle includes visits to Dublin, Belfast, the Cliffs of Moher, and much more. For only $4,599 per person, you'll get five star accommodations, a special welcome reception and farewell dinner, traditional Irish breakfast every day, gratuities for your local guides, transfers to and from the airports in Shannon and Dublin, and an exclusive Go Next Program Manager to make sure everything runs without a hitch.