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A/R Aging Report Guide1031 Exchange GuideLOC GuideSBA 7(a) GuideSBA 504 GuideSection 179 GuideSelling a Business
Setting an Asking PriceUsing a Business BrokerSelling a Business During DivorceSelling a Failing BusinessTransferring Intellectual PropertyPreparing an Online Business for SalePreparing for Sale, Two Years OutSelling a Business QuicklyWriting a Selling MemorandumSelling a Business Step by StepSelling a Business With DebtChanges Worth Making Before SellingHourly transfers with the relationship, flat fee with the process. Contingency does not transfer — it is an inventory of live matters.
Case inventory of $645K carries at $328K once the firm's share and the years to resolution are applied. Nearly half the headline is time.
Read from the calculator on its shipped example. Lines marked (derived) are the difference between two of its figures rather than one it displays directly.
Every figure above is computed from inputs you control. Change one and the whole model moves.
Nearly half disappears to the firm's share and the years to resolution. Carrying it at face overstates the firm.
Flat-fee work transfers with the process, which is worth less than a relationship a buyer can keep.
These charts are the calculator’s own, drawn from the example it ships with. Put your figures in and they redraw.
Adding the three revenue types together and applying one multiple. It produces a number that describes no firm. Contingency inventory in particular is not lendable either — a lender cannot foreclose on a live matter or time one, so coverage is computed on the transferable practice only.
Rules of thumb that circulate because they are roughly right. The calculator labels them as such and asks you to record your own source.
The tool applies all of this to your numbers, and tells you where it disagrees with itself.
By practice type, separately. Hourly work transfers with the relationship, flat fee with the process, and contingency does not transfer at all — it is an inventory of live matters valued at expected value and discounted for time.
Less than its expected value. On the worked example $645K carries at $328K once the firm's share and the years to resolution are applied. A matter live for four years is worth a fraction of the headline.
Other lawyers. Rule 1.17 prohibits fee splitting with non-lawyers, which removes the private equity and MSO structures that transformed dental and veterinary valuations.
Yes, but not against the contingency inventory — a lender cannot foreclose on a live matter or time one. The tool computes coverage on the transferable practice only.
The answers above use the worked example. Your practice will give different ones.
Two constraints shape every law firm deal: the buyer pool is other lawyers, and the contingency inventory cannot be lent against at all.
Available, but sized on the transferable practice — hourly and flat fee. The contingency book does not count toward what a lender will advance.
Bank debt, seller note and equity against coverage on the transferable practice only, which is a smaller number than the valuation.
Usually the largest single piece. It is also how the contingency inventory gets paid for, since no lender will fund it.
Every 20% owner files one. With relationships as the only asset, the guarantor carries the file.
Contingency inventory is worth a fraction of its headline and no lender will fund it. Have the transferable practice priced separately before you open a conversation.
No credit card required now. As long as your details are in the system, we send the discount access details when the software opens.
And the financing calculators are free and working today. SBA 7(a), 504, CAPLines, Form 413, equipment and seller paper — your account opens all of them the moment you register, months before the valuation software ships.
The whole analysis exports as one PDF, generated server-side — every tab, the five-year history, the normalization and the working behind each figure. Not a screenshot of the tab you happen to be on.
It carries the business name, the period, who prepared it and for whom, so a lender or a buyer can act on it without asking who produced the figures.
One email when the software opens, and nothing else. Your details are not sold or passed on.
Figures are the calculator’s worked example, read from the tool itself. Thresholds described as conventions are not market observations. Saving is optional and off by default; saved work is encrypted at rest with AES-256. This tool produces estimates on figures you enter, not a valuation, appraisal, or legal, tax or accounting advice. ExitAdviser is operated by Simplifying Calculation LLC, a Delaware limited liability company.