Lawyer business valuation is the technique of deriving a fair market value for a particular business. Many factors go into valuating your lawyer business, such as your proximity to a large city, the type of law you specialize in and how established your business is within your area. As there are multiple factors going into assessing your business’ worth, there are also different ways in which you can get your company’s worth. You can use an external valuator to assess the fair price of a business or do it yourself. Whether you are interested in buying or selling a business, assessing its correct value is of utmost importance.

Getting a business assessment is an invaluable tool to help you make sound business decisions now and in the future. Follow these steps to find your lawyer business’ worth:

1. Learn the tools of the trade with software to find your lawyer business’ worth on your own time.

2. Use a variety of information resources to find the value of your lawyer company’s sector.

3. Consult a local business appraiser and benefit from face-to-face meetings.

Action Steps
The best contacts and resources to help you get it done

Make use of lawyer business valuation software to appraise a lawyer business on your own

Learning how to value a business by utilizing lawyer business valuation software can be very helpful if you are ever looking to expand your business by opening up another firm, or if you are looking to add more staff attorneys to expand your practice area. The factors and formulas created especially for valuating a lawyer business are included, ensuring that you will get as accurate a report as you would if an experienced lawyer business assessor did it.

I recommend: ValuSource sells a software package that includes market data and industry composition valuation methods to tailor your report to your lawyer business. NVST has a software solution called eValPro that has built-in SIC code lookup to get the most specific law industry information available for an accurate assessment every time.

Gather industry analyses and reports to value a lawyer business

Appraise a lawyer business by consulting trade-specific financial reports and analyses. A lawyer specific report will go into detail regarding the performance of the lawyer sub-division you are in. A general report will show how the overall economy is looking.

I recommend: Infiniti Research is a good resource to find industry-specific financial information such as the market overview and industry trends for the professional services law firms offer. The Brandow Company has many different levels of industry specific reports of all SIC sub-divisions of lawyer businesses, such as divorce and family law.

Purchase a lawyer appraisal by contacting a local professional with experience in your industry

These business valuation professionals will also be able to meet with you and go over the unique formulas and calculations that are necessary for a proper lawyer business valuation. When looking to value a lawyer business, a local professional will have a better idea of your area's economy. This can work in your favor when you are looking to sell your business or purchase a new location, for example.

I recommend: Houlihan Lokey is located throughout the United States and has many years of experience in providing accurate lawyer business valuations to their customers. Nationwide Valuations has offices all over the country that will complete your lawyer business valuation quickly and comprehensively.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It is a good idea to get a lawyer business valuation at least once a year to keep abreast of the condition of your business and financials.