Law Firm — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
3×
Typical
4.5×
Max
6×
Revenue Model
Mixed
Capital Intensity
Low
A typical multiple of 4.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Law firms typically trade at 3×–6× EBITDA. Niche practice areas with pricing power, recurring commercial and transactional work, and a partner team that extends beyond the founding partner attract the upper end. Regulatory standing and professional indemnity insurance are essential qualifications for buyers. Technology disruption through LegalTech, partner dependency, and client concentration in cyclical sectors such as property are key risk factors.
Key Value Drivers
- Recurring transactional and commercial work
- Niche practice area with pricing power
- Regulatory standing with professional accreditation
- Partner team beyond single founder
- Litigation funding or specialist income
Key Risks
- Partner dependency and succession risk
- Regulatory compliance and indemnity insurance costs
- Commoditisation in high-volume areas
- Technology disruption (LegalTech)
- Client concentration in cyclical sectors
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.