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Personally, if you’re happy where you are, and in house is all you know, I’d try and see if the company will try and keep you. You have institutional memory which is very valuable to the company. Plus, firm life is completely different and you may not enjoy it nearly as much. I hated firm life but love in house work
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You should ask for a title change as well. At 5 years, especially at the same company, you should be corporate counsel. I suspect that if you get the title change you will have a lot more other in house offers to consider.
1. You should absolutely advocate for yourself to get paid for the value you contribute. 2. I would recommend not necessarily tipping your hat that you have an offer in hand, you could end up with a raise just large enough to keep you on board while they now view you as someone who is looking to leave which means they may just start looking for your replacement or ways to live without you. Then you could be let go without a landing spot. Obviously there are dynamics that could shift this advice one way or the other. Good luck!