Calculator · UK 2025/26
Law Firm Valuation Calculator
Normalised profit × multiple by firm type and region, plus WIP and tangible assets. UK 2025/26 indicative ranges. Conveyancing-heavy firms shown at current depressed market levels; specialist firms at premium.
Your inputs
Indicative total value range
£820,000 – £1,420,000
Goodwill multiple: 1.00× – 2.00× normalised profit, plus WIP and tangible assets.
Goodwill range
£600,000 – £1,200,000
WIP
£180,000
Tangible assets
£40,000
Notes: Directional model using UK 2025/26 indicative market ranges. Conveyancing-heavy firms are currently depressed by post-2022 market conditions. Specialist firms (personal injury with strong CFA pipeline, niche commercial litigation, prestige private client) command premium multiples. Corporate acquirer premium not modelled — corporate buyers paying for strategic fit sometimes pay above the upper range.
Normalised profit matters more than the multiple. Add-backs (partner drawings normalised to market salary, personal expenses removed, one-off items called out) typically swing the profit number by 10-20%, which moves the valuation by far more than the multiple range.
WIP is recognised on an earnings basis under FRS 102 / FRS 105. Aged WIP (over 6 months) is typically written down or excluded. Litigation WIP is discounted more aggressively than conveyancing.
Frequently asked
- What's the UK law firm valuation formula?
- Indicative formula: normalised annual profit × multiple + WIP + tangible assets = enterprise value. Multiples vary widely by firm type and region. High-street general practice: 0.8-1.2× profit. Mid-market partnership/LLP: 1.2-2×. Specialist firms (personal injury, niche commercial litigation, prestige private client): 2-3×+.
- What's normalised profit?
- Profit adjusted for items that won't carry to the buyer: equity partner drawings reset to market salary, personal expenses removed, one-off items called out, related-party transactions normalised. Normalisation typically swings profit by 10-20%, which moves valuation by far more than the multiple range.
- How is WIP valued at sale?
- WIP is recognised on an earnings basis (FRS 102 / FRS 105) at recoverable amount. Aged WIP (over 6 months) typically written down or excluded. Litigation WIP discounted more aggressively than conveyancing because conversion is slower.
- Are conveyancing firms cheaper than commercial firms?
- Currently yes, depressed by post-2022 market conditions. Conveyancing-heavy firms trade at lower multiples (0.8-1.5× typically) than specialist commercial or private-client firms. Pre-2022 conveyancing factories commanded premium multiples; current market significantly lower.
Pre-sale planning needs 18-24 months
EBITDA normalisation, BADR eligibility, Section 162 incorporation — none of this can be done in the last few weeks. BADR rate rises from 14% to 18% on 6 April 2026.