Join us in Chicago on June 25, 2015 for the trial practice tools you need to evaluate the financial issues in a matrimonial case while learning from seasoned litigators as they prepare themselves (and you) for an upcoming mock financial trial! From case assessment through closing argument, this seminar gives you the information you need to analyze, organize, and present persuasive facts that are essential for reaching a favorable ruling during a financial trial. Armed with a hypothetical case fact pattern and supporting business valuation report (which will be provided to registrants prior to the program), attendees will leave with a greater understanding of: how to assess a client’s position regarding maintenance, child support, business valuation, and possible dissipation claims; how to use discovery and other tools to flush out relevant facts and admissions; how to present a storyline favorable to the client; the ethical issues that arise when a client fails to disclose relevant data; how to conduct direct and cross-examination of business valuation experts; how witness choice and the structure of testimony impact a financial trial; the factors courts consider in determining child support, maintenance, and property distribution – as well as the essential evidence needed to present such cases; the key elements of a persuasive oral and written closing argument; the court’s expectations from family practitioners during a financial trial; and much, much more.

The seminar is presented by the ISBA Family Law Section and qualifies for 7.50 hours MCLE credit, including 7.50 hours Professional Responsibility MCLE credit (subject to approval).

Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. John, where do you begin to get a value on a family law practice? It seems that one times gross revenue is unfair since it is usually one time business. I saw you speak at an ISBA event and this question was not addressed.

A. Regarding your question - it sort of depends on whether you are buying or selling and where you want to start. In general, I agree with you that a multiple of one times gross for a family law practice is probably high. It depends on whether the practice has built up more of a firm brand vs. an individual brand. In other words institutionalized the practice. Also on where and how the firm gets business - advertising, referral sources, etc. A firm that has practice (institutional) goodwill might very well start at a multiple of one whereas a practice where the goodwill is personal goodwill the multiple might be .75 or less - in some cases even zero. I know of a few family law practices in the Chicago area that have been sold for .33 of gross revenue. 

Often the initial asking price has little to do with regard to where you end up. Often, due to the concern that the clients and business might not materialize for the new buyer many firms are sold on various forms of an "earn-out" or a small payment at closing with the remainder paid and based on a percentage of revenues collected over a period of time - 3 to 5 years.

I have seen PI and other one shot matter firms sell for one times gross revenues but this is a best case scenario. CPA firms fare much better.

In the ISBA Family Law Section's August newsletter, section chair Kelli E. Gordon does a superb job of describing the status of HB 1452, the much-discussed overhaul of the Illinois Marriage and Dissolution of Marriage Act. "It makes many changes," Gordon writes, "some significant (like eliminating the terms 'joint' and 'sole' custody) and some insignificant (like eliminating 'grounds' other than irreconcilable differences)."

As Gordon notes, the bill is still a work in progress that will likely take center stage during the fall veto session. Here's her description of the bill's past and probable future.

"The bill passed the House of Representatives on April 10, 2014 with House Amendment 2 and was sent to the Senate the same day. Senate Amendment 1 completely deleted and replaced the underlying bill on May 8, 2014," she wrote. "The bill ended up in the Committee on Assignments at the end of the spring session.

On January 13, 2014, A. Traub and Associates relocated their office space from downtown Lombard into an office building located at 100 West 22nd Street, Suite 150 Lombard, IL. The law firm represents numerous children with their Guardian Ad Litem work. “We are most excited about providing special amenities through our children’s meeting room,” said senior attorney Chantelle Porter. The children’s room will be kid friendly and welcoming in design with playful colors and children sized tables and chairs. Principal Angel Traub added, “It allows us to meet with the children we represent on their level; making them feel more comfortable in tough situations is our goal.”

A. Traub and Associates has a strong word of mouth referral business and the firm is growing primarily due to happy clients. In November of 2012, the firm opened a second office located at 171 W. Wing Street, Suite 205, Arlington Heights, IL so that it may expand its services in Cook County.  In 2013 alone, four staff members were hired to support the firm’s client base. Part of the expansion plan is to hire more attorneys.