Law Firm Morgan & Morgan Explores Minority Stake Sale, Eyes Public Listing

Morgan & Morgan, the largest personal injury law firm in the United States, has hired JPMorgan to explore a potential minority stake sale that could pave the way for a public listing in the coming years, according to people familiar with the matter.

The family-controlled firm is considering a transaction that could raise more than $1 billion and bring in an outside investor with experience in preparing businesses for the public markets, particularly private equity firms with a track record of guiding companies towards initial public offerings.

Professional services firms, including law and consulting businesses, have increasingly attracted private equity interest in recent years, driven by their stable revenues and the potential to deploy artificial intelligence to improve efficiency and profitability.

Regulatory Constraints

In the United States, rules restrict non-lawyers from owning law firms outright, designed to ensure that profit motives do not override clients’ interests. However, private equity investors can still participate indirectly in growth opportunities, often through stakes in back-office operations or management services organisations.

Recent transactions using this structure include private equity firm Trive Capital acquiring a stake in law firm Massumi + Consoli, and Orion Legal investing in law firm Dudley DeBosier.

Morgan & Morgan is reportedly exploring a similar model, under which a private equity partner could help expand and professionalise operations in preparation for a potential future IPO, one of the sources said.

Early-stage Discussions

John Morgan, co-founder of Morgan & Morgan, said in response to questions that discussions are still at an early stage and that any capital raise remains uncertain.

“Like many firms in America, we are being approached constantly, and we listen,” Morgan said. “We are fortunate that we are a highly profitable firm that really doesn’t need money to invest in growth.”

John and his wife, Ultima Morgan, both lawyers, founded the firm in 1988, building it from a small practice into a nationwide operation with offices in all 50 states. The company has funded its expansion entirely through internal profits, without external capital.

The firm said by email that it generates annual revenue of $2.4 billion.

The couple controls Morgan & Morgan alongside their children — Matt, Michael, Daniel and Kate — with equity partners holding the remainder. Their sons also work as lawyers at the firm.

John Morgan noted that any move towards a public listing would involve complex ethical and regulatory considerations, meaning such plans remain a long-term prospect rather than an imminent development.

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