There are an array of factors that need to come together to put a valuation on any law firm. Ultimately the price achieved is generally a function of the audience the firm is placed before.
In it's simplest terms the seller, or their agent, needs to find the right buyer who's ready to purchase when you're ready to sell. And that means you need to find a broker who has a database which has the requisite number of serious individuals onboard.
Having found the right audience the Law Firms value will depend upon;
The strength of the Accounts.
The general ongoing viability of the firm.
The quality of the remaining staff.
The strength of the brand.
The long term value of the introduced work.
The potential strength of the firms website as a lead generator.
The firms ability to attract new work.
The Accounts and Case Management software.
The impact of any previous PI claims.
The area's of Law transacted.
Potential Legal Aid contracts.
... and the ability of the Firms Principal to be taken out of the equation and new leadership put in place. Furthermore, will office politics potentially play a part and will that scare off a prospective buyer if the perspective is that any remaining staff may not be fully committed to the new direction being taken.
Additionally the market doesn't tend to accept the notion of "goodwill" as more firms are actively "out and about" relieving their competitors of long standing customers.
Valuing a law firm means juggling a lot of factors to arrive at a valuation that is both realistic and achievable.
Our Nick Parker is ideally placed to discuss your individual circumstances on a P&C basis as a way to agree a strategy that both fits with your goals and timeframes.
In the first instance please contact ourselves on 0845 603 0708, email firstname.lastname@example.org or complete the form on the right and we'll come back to you.