Crowe tax director Michael O’Scathaill, recently presented a webinar entitled Merging or Retiring from Practice as part of the Law Society’s series of Small Practice Information Sessions.
In this presentation, Michael covered a number of the commercial aspects involved in merging or retiring from a law practice, as well as considering the major financial and tax issues that typically arise.
In particular, he highlighted the importance of planning your retirement well in advance, in order to ensure an exit from practice on the most favourable terms and also to allow time to build a retirement nest egg. Some of the typical pinch points in negotiations on a sale of business were considered, including valuation of goodwill and work-in-progress, what is to become of any premises and the terms of any involvement of the vendor subsequent to the sale.
For those considering a merger with another firm, Michael emphasised that to really make it work, each party should be clear as to why they wanted to merge and could clearly identify the value that would be created. He also considered the various tax issues, reliefs and traps that can arise in a retirement or merger scenario.
Crowe has extensive experience working with solicitors and legal practitioners, providing a full range of accounting, tax and consultancy services. Our mix of strategic and functional skills and knowledge allows us to provide both innovative and workable business solutions for solicitors and their clients.