The American Lawyer has been reporting on law firm financials for more than 25 years. Through our annual Am Law 200 and Global 100 surveys, we utilize a slew of metricsprofit margin, revenue per lawyer, net income, profit per partner, and so onto provide a detailed assessment of the financial health of the world’s legal elite. But one area we haven’t tackled is how much each firm is actually worth. That is, until now.
After discussions with more than 50 private equity and other investment professionals, merger and strategic consultants, and senior law firm personnel, including managing partners, chief financial officers, and treasurers, we developed a method for valuing a law firm.
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