Morgan & Morgan, the United States' largest personal injury law practice, has retained JPMorgan to assess options for selling a minority stake that industry contacts say could total more than $1 billion. The move, according to people familiar with the discussions, is being viewed as a preliminary step toward preparing the firm for a public listing at some point in the future, though that transition is not expected to be imminent.
The firm, which remains under family control, is reported to be seeking an external partner capable of helping scale and professionalize the business ahead of any eventual initial public offering. Sources characterize potential partners as private equity investors experienced in readying firms for the public markets and in executing IPOs.
Private equity has increasingly targeted professional services businesses, including law and consulting firms, drawn to the steady revenue streams these companies generate and the potential to boost margins through efficiency gains - including those driven by artificial intelligence. Because U.S. rules bar non-lawyers from owning law firms directly, investors often take stakes in affiliated service entities. One commonly used structure is a management services organization that owns and operates non-legal support functions, allowing capital providers to benefit from growth without directly owning the law practice itself.
Recent transactions following that pattern include private equity firm Trive Capital acquiring a stake in law firm Massumi + Consoli, and Orion Legal taking a position in law firm Dudley DeBosier. Sources say Morgan & Morgan is exploring a comparable arrangement with an investor that could expand the firm's infrastructure and professional management in advance of any public debut.
John Morgan, a co-founder of the firm, responded to inquiries by emphasizing that conversations are at an early stage and that a capital raise is not assured. "Like many firms in America, we are being approached constantly, and we listen," he said. He also highlighted the firm's financial strength, adding: "We are fortunate that we are a highly profitable firm that really doesn’t need money to invest in growth."
Founded in 1988 by John Morgan and his wife, Ultima Morgan, the firm grew from a small practice into a nationwide operation with offices in all 50 states. The Morgans, both licensed attorneys, retain control of the firm alongside their children - Matt, Michael, Daniel and Kate - while equity partners own the remainder of the business. The firm's sons are practicing lawyers at Morgan & Morgan.
The firm provided a statement via email reporting annual revenue of $2.4 billion.
Despite interest in outside capital, John Morgan cautioned that taking a law firm public raises complex ethical and regulatory questions, meaning any move toward an IPO would be a long-term consideration rather than an immediate next step. JPMorgan declined to comment on the matter.
What this could mean for markets and services:
- Professional services and legal sectors are drawing increased private equity attention due to reliable revenue and potential efficiency gains from technology.
- Structures such as management services organizations are being used to allow investors to participate in growth while complying with restrictions on lawyer ownership in the U.S.
- Large, family-controlled firms with significant cash flow, like Morgan & Morgan, may pursue minority capital to accelerate professionalization without giving up control.