How to Calculate What Your Law Firm Is Actually Worth - #145
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What's your family law firm actually worth if you decided to sell tomorrow? Most attorneys are shocked by the answer. In this J Sterling Insider episode, Richard James—founder of Your Practice Mastered, who's helped over 900 attorneys build scalable practices—reveals the brutal truth about law firm valuations and what drives them.
Drawing from real valuation worksheets and market data, Richard breaks down:
- The four types of law firm owners and why your exit strategy determines your valuation approach
- How value drivers like growth rate, profit margins, and LTV-to-CAC ratios can multiply your worth
- The major detractors that kill valuations: keyman risk, single channel dependence, and lack of systems
- Why most successful firms are worth far less than owners think—and the market realities limiting buyers
Listen in for Richard's exact framework that will show you exactly how to build a sellable firm—even if you never plan to sell—by maximizing the fundamentals that create sustainable profitability.
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Go to: www.JSterlingHughes.com for tons of Family Law Practice resources.
My purpose is to Empower Family Law Attorneys so they can build a beautiful family law practice and have the practice of their dreams.
I share my family law firm’s secrets, tactics, and strategies of how we have grown from 0 to 25 attorneys and over $15m in revenue in our first ten years.
When I am not podcasting, I am the CEO and Co-Founder of SterlingLawyers.com.
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Chapters
1. Introducing Law Firm Valuation (00:00:00)
2. Types of Law Firm Owners (00:02:59)
3. Value Drivers and Detractors (00:06:17)
4. Key Metrics: LTV to CAC Ratio (00:13:41)
5. Realistic Multiple Expectations For Smaller Firms (00:17:21)
6. Final Thoughts and Contact Information (00:21:42)
145 episodes