When valuing a law / legal firm the same principles apply when valuing most other types of business. These principles include, taking into account the firms current and potential future profit, income and cash flow and work in process. Although these factors are important, perhaps the most important aspect to take into consideration when valuing a legal / law firm is the people, including their level of experience, key areas of specialty etc.

We will look at close comparable's that offer us key ratios to assist in creating a base for our valuation, are the revenues and profit over the past three years on an upward or downward trend and how realistic are future revenue forecasts? What is the cash balance and what is the debt? What are the intangible assets i.e. brand, goodwill, websites etc. What is the spread of the clients and how long have they been with the firm?

These are just a few of the factors that our Valuations team take into account, obviously this list is not exhaustive!

If you would like to know more about our valuation services or have a question you would like to ask our valuation team, please call the number listed at the top of the page without obligation or use our free call back service.