Why should law firm leaders and owners be interested in assessing the value of the organizations?
The answer lies not only in the final result, the numerical value of the law firm, but also in the similarity between the intent of shareholders of publicly traded companies and the equity owners of law firms. Shareholders of publicly traded firms pay attention to value of the companies they own for two reasons.
Firstly, they wish to monitor the value of their investments over time. Equally important is their desire that companies identify and pursue strategies which ultimately enhance the value of their ownership holdings. As owners of their law firms, the goals of equity partners matches that of shareholders. And as managers, equity partners are focused on enhancing the value of their holdings and be informed by valuation techniques on implementing accretive business decisions.