Mr. Shelton Quoted on Importance of MSO Deal Structure in Bloomberg Law
- Frederick L Shelton
- May 31
- 1 min read
Bloomberg Law
May 29, 2026
From the Article:
MSOs, a structure borrowed from the medical and accounting fields, gives tech specialists a profit-generating vehicle to share in the wealth they help produce, said Frederick Shelton, an adviser to law firms in MSO deals.
“The chief tech officer who designs and creates a transformational tech stack that completely transforms their firm can never get stock options like they could in every other industry,” Shelton said.
Law firms are commonly investing a portion of deal proceeds back into the MSO for a minority share. In a properly structured deal, Shelton said, this minority share accrues in value and more than makes up for the decrease in compensation equity partners at the law firm may face in the immediate aftermath of a sale.
“The deal needs to be structured so the attorneys, in addition to a reduced salary, get distributions from the MSO that get them to their previous salary or better,” Shelton said.
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