Why employee ownership is reshaping law firm succession
July 1, 2026
Employee ownership is one of the fastest-growing business models in the UK.
1. When should I start the process?
As soon as possible! Many buyers will also want the current owners to remain in the business in some capacity, even if part-time, for at least a year – leaving it too close to your retirement date will make a disposal more difficult, particularly for a smaller practice.
Start the process from a position of strength when you have just confirmed your PII cover for the whole of the next year. If you leave it to when a PII renewal date is approaching, you may end up committing to another full year of cost for a fraction of the year’s cover, as cost may not be able to be refunded or transferred to a successor practice policy. Even worse, it may mean that cover is not obtained and we are then into a distress sale situation, which nobody wants.
2. Bring in your advisers at an early stage
By appointing the right advisers, they will know the market inside out and how to get the best results for you. It’s best to bring in your advisers before approaching any potential acquirers but ensure you appoint specialists who are experienced in legal sector transactions, understand how law firms are run and who know potential acquirers to approach.
Agree your objectives and parameters. Your advisers will know the market values, multiples, adjustments, usual treatments etc. They also know what information should be shared and when.
Non-legal specialists, on the other hand, will be less likely to know how to approach legal sector transactions, less likely to know the right acquirers and may miss key matters that are specific to law firms.
Employee ownership is one of the fastest-growing business models in the UK.
For many law firm partners, the idea of stepping away from their practice can feel daunting.
Mergers and acquisitions in the UK legal sector are more than balance sheets and client lists: they transfer professional responsibilities,
Law firm mergers demand sensitivity, expertise, and discretion. By working with ALFMA members, you gain access to advisers who:
Every merger is a defining moment. With ALFMA at your side, you can approach it strategically, confidently, and with the assurance that your firm’s future is in safe hands.
The Association of Law Firm Merger Advisers are a team of proven market experts, to help you take the risk out of merging your business.
If you would like to speak with a member of the team you can contact us below.
