Law Firm Valuation - Parts I, II and III

Law Firm Valuation

The valuation of a law firm is affected by many factors, especially the purpose of the valuation.  Law firms may need to be valued for a variety of reasons, including:

  • Estate planning
  • Marriage dissolution
  • Insurance coverage
  • Capital buy-in of a new owner
  • Capital buy-out of a withdrawing owner
  • Dissolution of a firm
  • Merger or acquisition

The exercise of valuing a law firm is more art than science, and a universally accepted approach to law firm valuation does not exist. The appropriate valuation methodology to use depends upon the objective of the valuation...

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