Number Crunching a Value for a Law Firm Brand
Posted By Rob Millard - 1 Comments -
Dennis Howlett has a piece on his blog AccMan Pro (which is aimed primarily at professional accountants) called How Number Crunchers put a Value on a Name. Like my posts of a while back How Much is a Law Firm Really Worth and External Ownership of Law Firms, he seriously questions the legitimacy of discounted cashflow (DCF) models for determining a value for a professional service practice. Important reading for British law firms that may be thinking of finding somebody to sell themselves to, once the legislation allowing this is enabled later in the year.
Dennis also comments on the IFRS implications of value measures.
Interesting .....
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Thanks for that Rob - an issue I didn't raise but which is worth considering...to what extent do professional forms factor in lock-in for partners as part of the overall comp package and what impact does this have on check-in/out value to the firm concerned?
I mention this because I resigned very suddenly from practice but made it very clear I had no intention of competing, which, at the time, was a very obvious and legitimate question for the succeeding partners to raise.