In this video, Greg from Telapost interviews Lou from ProBiz. This is just one of the many videos which we added to YouTube for Lou today.
If you have a law firm which you need a third party valuation done on, contact Lou today. He services all 50 states and is a treasure trove of information. He may be reached at 919-424-6300.
I personally recommend Lou as he sold one of my previous companies before I began creating content for law firms.
Selling a law firm to another partner
A business valuation determines the value or a business, or often in this case, the ownership interest of a partner or a PLLC (Professional Limited Liability Company).
Attorneys often reach out to a business appraiser for a non-biased, third party valuation when they consider selling their law firm or stake in the practice.
Lou never ceases to amaze me. From candy bars to law firms, he has some amazing stories. Lou says using a qualified, experienced, certified appraiser is bullet-proof and will hold up in court in the event there is a dispute in the future.
Off camera he mentioned that lawyers also get appraisals during bankruptcies, deaths, mergers & acquisitions, when purchasing another practice and more.
Beware unqualified individuals offering business valuations
Internal valuations are biased, and in the event a deal goes South, attorneys will rip apart a poorly assembled valuation, assembled either by an employee or other unqualified individual. CPAs, for example, are prohibited from offering business valuations without specific training.
An experienced expert has the credentials to determine a fair market value of a law firm and will do so using multiple methods.
Overlooked factors for pricing a law firm
Lou did not get into detail here although from selling a company I do know a few things which will determine the value of a company. This in no way should be used to assess the value of your law firm; these are just a few factors which could be applied to practically an organization or corporation and are sometimes overlooked. I personally overlooked at least one of the items below. Of course, any business owner, lawyer or pizza maker, wants to maximize the value of their business prior to selling it, so here it is:
- The SEO value of the website
- Historical financial performance
- Quality of bookkeeping
- Office furnishings and technology
Of course, what is involved in selling a firm likely varies drastically for bankruptcy attorneys, family practices, personal injury and criminal defense lawyers.