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Armstrong Watson provide valuations of law firms for a variety of reasons:
Our valuation report will discuss all of the potential valuation methodologies; changes in the legal market; the firm's location, work types, people and prospects; and how changes in the legal market may affect the firm given its specific characteristics.
The report will conclude with the most appropriate valuation methodology and the most appropriate valuation multiples if relevant. An analysis will be prepared of the financial position and results of your firm and the valuation methodology and multiple applied to the financial analysis to generate the appropriate valuation.
A formal report concluding the most appropriate open market value of a law firm.
Law firms of all sizes and locations.
Head of finance to supply information. Pre-agreed partners and staff to be available for the interviews.
Interviews with key people either by telephone or in person. Presentation of a draft report. Issue of final report.
£3,500 plus VAT for law firms of up to 100 people. Desktop valuations are also available at a cost of £1,950 for firms of up to 100 people. Bespoke costs agreed for larger firms. Note: if the valuation is part of a legal dispute other costs may be involved.
Armstrong Watson were approached by an individual that had left a law firm that he had established some years previously. The terms of the shareholders’ agreement provided for an independent valuation to be carried out following appointment of an arbitrator by the President of the ICAEW. Our remit was to work on behalf of the individual with his dealings with the arbitrator and the other parties to the dispute.
The other parties were to remain as owners of the practice and had offered a valuation of our client’s shares of almost £nil. Our client expected considerably more and had fallen out with his former colleagues as a result. Legal action had also been taken and each party was being advised by other lawyers. We therefore needed to liaise with the individual’s legal advisers; take care not to interfere with the legal process; or to adversely impact upon it.
We were instructed to carry out a valuation of the law firm for submission to the independent arbitrator. We prepared a fully substantiated valuation report taking into account all of the issues of the firm and the changes in the wider legal market. This was prepared on the same basis as if we were the independent arbitrator. We always take this approach and will only put forward a valuation that we could defend in court if required. We do not artificially inflate valuations as part of a negotiation process.
Our calculations showed a value of the individual’s shares in excess of £100,000. We submitted our report on that basis and responded to the other party’s submission on behalf of our client.
The independent arbitrator’s valuation was in line with our calculations and report and in our view provided a fair valuation for all concerned. More importantly for our client, it was a result that he was delighted with.
Andy and his team were consummate professionals from the outset. Throughout my dealings with them all my enquiries, and those from my legal team, were dealt with very promptly. Following receipt of an initial favourable advice, Andy was instructed to proceed and prepare a detailed valuation for presentation to the appointed expert pursuant to the terms of the Shareholders Agreement. This was a very detailed and meticulous piece of work. It could not fail to impress. The other parties produced a very slip shod valuation by comparison, and then some fanciful counter arguments by way of response to Andy’s report. These were dealt with in very short order in Andy’s supplemental report. When the expert’s fair price valuation of my shareholding came through it was within 4% of Andy’s valuation figure. Quality always shines through and the quality of the work produced by Andy and his team really shone through. Sincere thanks once again to Andy and his team at Armstrong Watson.
To find out more about how we can help you or your business, contact one of our Legal Sector Specialists above.
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Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW