Business for Sale, Would I Buy It? | Forclosure Focused Law Firm

This is the next up in our series of “Would I Buy This Business”. We have a law firm focused on foreclosure default, servicing the New England tri-state area. Okay, so, law firm for sale. The first catch with selling a law firm is presumably you have to be an attorney yourself to consider buying it. So on the plus side, if you’re interested in this one, you’re not going to be competing with a lot of buyers. On the downside, you’re only probably going to be able to buy into it if you’re an attorney.

Let’s see further down if it says. A law firm, with two principal partners, a 30-year reputation, REO sales, eviction, as well as personal injury and Workers Comp. Looking to be acquired. Company revenue mainly comes from mortgage servicing companies, the firm is 95% focused on foreclosures. After decades of independent management, the firm’s partners are seeking a change in their professional rhythm, they’ve decided to pursue an acquisition to benefit from larger-scale operational efficiencies. So maybe that means they’re planning to stick around and they want to be bought by someone who can bring in more work and take care of some of the admin and overhead.

This is kind of an unusual one cause you have to be a qualified person to buy it. Two cause the people who are selling it sound like they want to stay, they’re just hoping that you’ll give them $1.7 million for it. But then if they’re sticking around they’re still going to want to get paid. So the cash flow for this is 741,000, so if you take it over what are you actually getting for? If you got to keep paying these guys to stick around they’re going to be taking a pay cut.

This deal is messy. Let’s put it that way. The buyer pool is limited, the financials are unclear, and the sellers are gonna stick around and keep running it or something. I don’t know. It’s really hard to sell a business as a business owner but want to still stay involved. You can take a transitionary role maybe, do some sales to make sure clients transition. But sticking around full-time and becoming an employee instead of the owner is tricky. I think a lot of people have a hard time with that mental leap of going from owner to employee. And this one just seems like they’re gonna probably have a tough time making that work. But good luck, I hope they can sell it. I just wouldn’t count on it.

Here’s a little about this series. CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses for sale and see if Matt would be interested in buying them.