What is Your Law Practice Worth? An Interview with Mark S. Gottlieb, CPA/ABV/CFF, ASA, CVA, CBA, MST of MSG Accountants – An Accounting Perspective

In this interview, Mark S. Gottlieb, CPA/ABV/CFF, ASA, CVA, CBA, MST of MSG Accountants discusses valuing the worth of a law firm.

Gottlieb explains that “valuation is a prophecy of the future.”

In the context of law firms, Gottlieb points out that value and worth relate to 2 factors: (1) Cash Flow; and (2) The risk associated with generating that cash flow.

When asked why reliable valuation multiples do apply yet to law firms, Gottlieb describes the “personal exercise” involved when determining the value of a law firm, including considering: (i) A lawyer or firm’s professional good will; (ii) Its assets (egs. trade name, domain name, phone number, etc.); (iii) Its areas of expertise; (iv) The geographic scope of its practice; and (v) The sources from which a law firm generates its clients.

Addressing the value that Senior Attorney lead firms present to Growing Law Firms, Gottlieb and Poock discuss “Synergy Value.”

As Gottlieb states, the synergistic approach to growing a law firm presents a clear advantage in comparison to growing organically, where the benefits of synergistic growth include generating: (i) More business; (ii) Greater efficiencies; and (iii) More effectiveness.