Key facts
- Morgan & Morgan is exploring the sale of a minority stake.
- JPMorgan has been hired to manage the potential stake sale process.
- The stake sale could raise more than $1 billion.
- The firm is considering private equity investors as partners.
- A future public listing (IPO) is a potential long-term outcome.
- Morgan & Morgan reported annual revenue of $2.4 billion.
Morgan & Morgan, the largest personal injury law firm in the U.S., is reportedly exploring the sale of a minority stake, with JPMorgan hired to manage the process. The family-controlled firm could raise over $1 billion through this deal, which is seen as a potential precursor to an initial public offering (IPO) in the future. Private equity investors, particularly those with experience in preparing businesses for public markets, are being considered as partners. This move aligns with a growing focus of private equity investors on professional services firms like law firms, attracted by their steady revenue and potential to use AI to improve efficiency and profitability. While the firm is highly profitable and does not urgently need capital for growth, it is open to discussions. Co-founder John Morgan confirmed that discussions are in their early stages and any capital raise remains uncertain, emphasizing that ethical and regulatory hurdles make a public listing a distant prospect. The firm, founded in 1988, has grown into a nationwide operation with offices in all 50 states, funded by its own profits. It reported annual revenue of $2.4 billion. The U.S. restricts non-lawyers' ownership of law firms, but private equity can benefit from growth by taking a position in back office divisions using a management services organization structure.