Selling a Cloud-Based Firm

Making a firm salable.

A law firm whose entire IP resides in the senior partner's head is unsalable. Valuations are based on repeatable systems. Transitioning to cloud infrastructure and codified workflows directly increases the EBITDA multiple during a sale.

FactorNegative ImpactPositive Impact
Client BaseTop 3 clients = 80% RevHighly diversified
WorkflowsAd-hoc, undocumentedCodified in PMS

EBITDA Multiple Estimator

Implementation Pitfalls

  • Failing to document existing processes before applying technology. Software amplifies chaos.
  • Underestimating the cultural resistance from senior partners who measure value in hours billed.
  • Ignoring data egress fees and technical limitations in vendor API contracts.

Frequently Asked Questions

How do I reduce founder dependency?

Document every process. Implement a PMS where matters can be run blindly by a new hire following checklists.

What is a normal multiple for a boutique?

Typically 1.5x to 3x EBITDA, heavily dependent on recurring revenue and brand equity.

Explore Core Pathways