A $9M partner transition completed through normalized earnings, structured financing, and a managed client handover
Client
A 28-year law firm with approximately $8M in revenue, owned by two senior partners with three junior partners holding a combined 20% equity position
Problem
The junior partners needed to acquire a significantly larger ownership stake, but the financial foundation to support the transaction did not exist. EBITDA was not normalized, no formal valuation had been prepared, and a large portion of revenue was tied directly to senior partner relationships with no transition plan. The transaction required institutional financing and deferred vendor payments, but the underlying numbers did not initially support it.
Services
Wefinx led the transaction structuring and partner transition, including normalization of earnings, valuation support, tax structuring, financing coordination, and development of a structured client transition plan.
Results
- Completed $9M partner buyout across two generations
- Normalized EBITDA increased from $1.2M to $1.5M through $325K in documented adjustments
- Secured approximately 70% bank financing, supported by normalized financials and an 18-month client transition plan
- Structured a $2.7M vendor takeback, resolving the retirement income gap and improving after-tax outcomes for both senior partners
- Sheltered approximately $2.5M in capital gains through full LCGE application
