Free calculator · UK 2026/27
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.
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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.
Worked example: Thornfield Solicitors LLP is a Midlands-based mid-market partnership with £600,000 normalised profit, £180,000 of recoverable WIP and £40,000 of tangible assets. Buyer demand is normal. The partnership/LLP multiple range of 1.0x to 2.0x applies with no regional or demand adjustment (Midlands = 0%, normal = 0%). Goodwill range: £600,000 x 1.0x = £600,000 to £600,000 x 2.0x = £1,200,000. Adding WIP (£180,000) and tangibles (£40,000) gives a total indicative value of £820,000 to £1,420,000. The mid-point of approximately £1,120,000 is a useful starting point for partner discussions and succession planning.
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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. Our team models the full picture as part of the advisory work.
- SRA Accounts Rules 2019Client account, five-weekly reconciliations under Rule 8.3, and the Rule 12 accountant's report
- Partnership, LLP and incorporatedProfit shares, the salaried member rules and the tax that follows each structure
- One team, start to finishThe same accountants throughout, not passed around
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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.