Most law firms in Canada change hands at a multiple of their normalized earnings, typically EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted for owner add-backs. The multiple itself depends on your size, location, growth trajectory, and how much the business depends on you, the owner.
Law firms are valued on recurring or repeat client work, practice-area mix, and how transferable the client relationships are. A base of recurring corporate or institutional work, associates who carry files, and a strong referral pipeline lift value; work tied to the founding partner, contingency-only revenue, and client concentration weigh it down.
Pushes the number up
- Recurring corporate or institutional files
- Associates who carry the workload
- A strong, diversified referral pipeline
- Documented processes and case management
Pulls the number down
- Work tied to the founding partner personally
- Contingency-only or lumpy revenue
- Concentration in a few clients
- Key-person risk on the principal
You put in your numbers. We show you two things.
Market data: Sector-specific transaction multiples based on aggregated business transaction reports. Updated quarterly.
Peer benchmarks: Estimates from verified owners in your sector and size range. See what similar businesses are worth, and compare your own expectations against market data and transaction multiples.
Takes about three minutes.
No pitch. No account required. Just your numbers in, and market context out.
Get My InsightsLaw firms are valued on normalized earnings and the strength and transferability of the client base. Practice-area mix, associate coverage, and key-person risk all move the number. Clariva shows the benchmark range for your size and province.
Higher for firms with recurring institutional work and associates who carry files; lower for practices tied to the founding partner. Enter your numbers to see your range.
Yes. When associates carry the files and relationships, more of the value transfers to a buyer, which supports a stronger offer than a practice built around one partner.
No. The estimate is for benchmarking and context only, and does not replace a formal business valuation. For a transaction, work with an M&A advisor or a Chartered Business Valuator (CBV).
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Not financial advice. Clariva is a data aggregation and compilation tool. All ranges shown on this platform are derived from publicly available transaction data and anonymized user submissions, and are provided for informational and benchmarking purposes only. Nothing on this platform constitutes a formal business valuation, financial advice, or a recommendation to buy or sell. Consult a qualified M&A advisor, Chartered Business Valuator (CBV), or legal counsel before making any financial or transactional decisions. Individual data is never shared or sold. Anonymized, aggregated insights may be used for industry research. You can request deletion of your data at any time by emailing tanner@clariva.ca.