Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. We have a two-partner firm in Columbus, Ohio. We have two staff members, and there are no other attorneys in the firm. We have been in practice together for 17 years. I am 62 and my partner is in his fifties. My practice is limited to intellectual property and my partner’s practice is limited to medical malpractice defense. Recently, as a result of lack of coverage, our unwillingness to hire associate attorneys, and our frustrations with dealing with management issues, we have decided that we would like to merge with a larger firm. However, we are concerned that our numbers may not be satisfactory. Our five-year averages are as follows:
- Gross Revenue – $500,000
- Expenses – $240,000
- Net Income – $260,000
Since we split the pot evenly we each made $130,000 on average. With these numbers are we a suitable candidate or are we just whistling in the wind? We would appreciate your thoughts.