What is the usual process for the purchase of a law firm?

Sales Procedure – a Rough Outline

A very rough outline of the procedure is as follows:

  1. All parties sign confidentiality undertakings.
  2. We agree terms with the buyer.
  3. The buyer is provided with information about the practice for sale.
  4. The parties meet or speak about plans and proposals. Proposals can be as varied as the partners of the selling firm joining the buyer’s practice or the selling partners accepting a lump sum in cash to exit the business.
  5. A ‘heads of terms’ (also known as a HoT) is drafted and agreed. This sets out a timetable for the acquisition and specifies who does what and when. It is rarely legally binding – just an outline of the intentions of both parties.
  6. A deal is reached and completion takes place. The buyer pays us an introduction fee – this varies according to the sale/purchase in question.