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What It's Worth: Law Firm Value

What It's Worth: Law Firm Value

The number of law firm mergers and acquisitions have reached record levels over the past few years—the highest annual total recorded in nine years was reached in 2015 according to MergerLine. This boom in law firm M&A, along with the impending mass retirement of baby boomer attorneys who own law firms, has created a wealth of opportunities for business appraisers and consultants. BVR's new special report, What It's Worth: Law Firm Value, provides a solid foundation for determining law firm value and offers law firm owners critical advice on succession planning. This comprehensive resource helps appraisers understand the key considerations to take into account when valuing a law firm including goodwill, origination credits, billing, and productivity. Plus, it provides key industry trends and data to help benchmark the value of a law firm. Highlights of the report include:

Tackle the unique challenges that law firm valuations can present with an overview of the methodologies used, the special considerations to take into account, and a useful checklist of questions to ask management when performing a law firm valuation

Understand the top value drivers for law firms with current market information including the drivers for firm consolidation, raising expenses, and a shifting competitive market

Have the latest benchmarking data and rules of thumb at your fingertips with analysis from Pratt’s Stats and rules of thumb from the Business Reference Guide on the sales of privately held law firms

Understand how to apply the excess earnings method to value the goodwill of a law firm with a comprehensive case study

Learn how the courts ruled on key aspects of law firm valuation with a look at 11 important court cases where law firm value was front and center

Get critical advice on succession planning for law firm clients and owners

Offers a demonstrative law firm valuation report, which gives you insight into the work product that can be expected when an appraiser opines on the value of a law firm


ABOUT THE EDITOR
INTRODUCTION
SECTION I: LAW FIRMS: VALUE DRIVERS AND VALUATION CONSIDERATIONS
TRENDS IMPACTING LAW FIRM VALUE
OVERVIEW OF METHODS FOR VALUING LAW FIRMS
SPECIAL CONSIDERATIONS IN VALUING LAW FIRMS
CHECKLIST OF SPECIAL INFORMATION TO REQUEST FOR THE VALUATION OF A LAW FIRM
COMMON ERRORS IN VALUING PROFESSIONAL PRACTICES
By Kevin Yeanoplos, CPA/ABV/CFF, ASA
GOODWILL IN PROFESSIONAL PRACTICES
APPLYING EXCESS EARNINGS TO DERIVE THE VALUE OF GOODWILL
WHEN A LAW FIRM GETS CAUGHT UP IN DIVORCE: AN ATTORNEY AND AN APPRAISER COMPARE NOTES
SECTION II: CURRENT MARKET FOR LAW FIRMS
TOP TRENDS IN THE LAW FIRM MARKET
BUY-SELL LANDSCAPE FOR LAW FIRMS
SECTION III: SELLING AND SUCCESSION PLANNING FOR LAW FIRM OWNERS
LAW PRACTICE TRANSFER CONCERNS
PRACTICE FOR SALE: SELLING A PRACTICE
EXIT PLANNING CONSIDERATIONS FOR ATTORNEYS
By Ronald L. Seigneur, ASA, CVA, CPA/ABV/CFF
SUCCESSION PLANNING FOR ATTORNEYS AND LAW FIRMS
By Ronald L. Seigneur, ASA, CVA, CPA/ABV/CFF
SECTION IV: FINANCIAL AND VALUATION DATA FOR LAW FIRMS
LAW FIRM VALUATION MULTIPLES BASED ON PRATT’S STATS DATA
PRICING LAW FIRMS—RULES OF THUMB
SECTION V: VALUATION AND THE COURTS
LAW FIRM VALUATIONS IN THE COURTS: CASES OF NOTE
Bakst v. United States of America (In re: Kane & Kane)
In re Marriage of Barten
Development Specialists, Inc. v. Weiser Realty Advisors LLC
Dixon v. Crawford, McGilliard, Peterson & Yelish
Hartley v. Hartley
In re Marriage of Kingery
In re Marriage of Restaino
In re Marriage of Ross
Von Hohn v. Von Hohn
Walsh v. Walsh
Weinberg v. Dickson-Weinberg
SECTION VI: RESOURCES
DEMONSTRATIVE LAW FIRM VALUATION REPORT
LAW FIRM FINANCIAL METRIC AND BUSINESS MODEL RESOURCES

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