In Episode 65 of the State of the Market for Law Firm Sales in 11 Minutes, Senior Attorney Match’s Jeremy E. Poock, Esq. addresses the following:
As Poock explains, today’s Startup Law Firms feature the following characteristics, or really, steps:
1. Introduce a product, namely, the practice area(s) of a Startup Law Firm
2. Develop a strategy to bring a Startup Law Firm’s product to market
3. Originate clients
4. Build a team
5. Grow sales/profits
6. Achieve an exit/sale
Poock also points out that Senior Attorney-led Firms offer the following value to Startup Law Firms:
(a) Instant client growth;
(b) Welcoming in the workforce of Senior Attorney-led Firms, that is, key lawyers and their support staff; and
(c) The subject matter knowledge that the lawyers at selling law firms have developed, which Startup Law Firms want and need to convert to digital content to attract the attention of clients who search online for lawyers and law firms to hire.
Poock points out that Startup Law Firms will sell their firms per Law Firm Sales 2.0, followed by Law Firm Sales 2.5, and eventually, Law Firm Sales 3.0.
In Law Firm Sales 2.0, Startup Law Firms will enjoy fixed payments upon their digital and brand value, plus earnout terms based upon their defined Books of Business.
Looking forward to Law Firm Sales 2.5 and 3.0, Poock explains that no earnout terms will apply to those sales because of sale value tied to digital value, brand equity, and good will without any dependence upon Rainmaker Attorneys to transition their Book of Business to a purchasing law firm.
As a result of the arrival of the Age of the Startup Law Firm, Poock includes the following warning to Senior Attorney-led Firms:
It’s very important for Senior Attorneys to recognize that as Startup Law Firms continue reducing their client acquisition costs due to the ease of generating clients digitally in today’s 3.0 Digital Era for the Legal Industry, the Books of Business of Senior Attorney-led Firms will become less valuable.
And, to listen to the Bonus Segment to Episode 65, please listen here:
