Free calculator · UK 2025/26
Law Firm Valuation Calculator
Valuation is the first step in any succession plan, acquisition conversation or equity partnership negotiation. Enter your normalised profit, firm type and region to get an indicative range based on current UK market multiples.
Law Firm Valuation Calculator
Valuation is the first step in any succession plan, acquisition conversation or equity partnership negotiation. Enter your normalised profit, firm type and region to get an indicative range based on current UK market multiples.
After add-backs: partner drawings normalised, personal expenses removed
Recoverable WIP only
IT, fit-out, furniture etc.
Directional model, UK 2025/26 indicative market ranges. Normalised profit add-backs typically swing the valuation by more than the multiple range. Corporate acquirer premiums not modelled.
Confirm your figure with a specialist solicitors' accountant
Client account rules are unforgiving. Have a specialist check your position, confirm the number is right for your specific situation, and point out anything worth acting on. No obligation, and we reply within one working day.
How law firm valuations work
The most common UK method values a law firm as goodwill (a multiple of normalised profit) plus separable assets (recoverable WIP and tangible assets such as IT and fit-out).
Normalised profit is the key driver. Add-backs that move the profit number 10-20% — removing personal expenses, adjusting partner drawings to market salary, stripping one-off items — typically move the valuation by more than moving the multiple.
Multiples vary widely: specialist firms with high-margin recurring instruction streams command premium multiples; high-volume conveyancing factories and sole practitioners trade at lower multiples because goodwill is less transferable. London adds a premium; northern markets trade at a modest discount to Midlands.
Get the full Practice succession and sale model and guide
Free Practice succession and sale tool
Value your law firm
Our interactive tool is built for a larger screen. Tell us your firm's numbers and a specialist solicitors' accountant will send your figure and the sensible next step, with no obligation.
The practice sale toolkit
A working valuation and net-of-tax model (goodwill range, WIP, and what you keep after Capital Gains Tax and Business Asset Disposal Relief), plus a sale-readiness guide. Enter your email to unlock both.
| A | B | C | D | E | F | G | H | I | J | K | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Your figures (edit the blue cells) | ||||||||||
| 2 | Annual profit | £400,000 | |||||||||
| 3 | Firm type | Partnership / LLP | |||||||||
| 4 | Region | Midlands | |||||||||
| 5 | Valuation range | Net of CGT (high) | |||||||||
| 6 | Goodwill (indicative low) | £400,000 | Goodwill gain | £800,000 | |||||||
| 7 | Total value (high) | £960,000 | CGT at 18% BADR | £143,460 | |||||||
| 8 | Net proceeds | £656,540 | |||||||||
| 9 | WIP on sale is income tax, separate from the capital gain | ||||||||||
| 10 | |||||||||||
| 11 | |||||||||||
Instant access on this page. We will only use your email to send you the odd genuinely useful update, and you can opt out any time.
Frequently asked questions
- What is normalised profit?
- Normalised profit is the profit figure you would show a buyer as a true representation of the business. You start with stated profit, then add back items that are personal to current owners or non-recurring: owner drawings above a market salary, personal car, spouse on payroll, one-off legal or restructuring costs. The adjusted number is what the multiple is applied to.
- Why is WIP added separately?
- Goodwill (multiple of profit) reflects the earning power of the business. WIP is a current asset: work already done but not yet billed. It gets added at face value adjusted for realisability — aged WIP above 6 months is typically discounted, and litigation WIP more heavily than conveyancing WIP.
- How does a succession buyout differ from an external sale?
- Internal succession (partners buying out a retiring partner) usually uses a formula in the partnership or LLP deed, which may differ from external market value. External buyers (consolidators, private equity-backed groups) may pay a strategic premium above the formula. This calculator models the arms-length market range.
Need help interpreting your results?
These calculators give directional figures based on published rates. Your actual position depends on firm structure, basis period adjustments, existing capital contributions, and your specific revenue profile. We model the full picture as part of our advisory work.
Book a free consultation