INSIGHT: What Drives Law Firm Value? Stacking Up Firms With S&P 500

摘要

Valuation of law firms opens up areas for analysis and comparison which are not available when onlyconsidering operating parameters like revenue and profits. Law firm values can be compared to publiclytraded companies, as in the S&P 500 index, leading to interesting insights.Magnitude and growth in cash flows are the core building blocks of valuing public companies; and theseare also the fundamental drivers of law firm valuation.