New BVR study reveals BVFLS profit drivers

BVWireIssue #197-3
February 20, 2019

practice management and growth
valuation practice management, compensation, BVR Firm Economics Survey

Litigation and transactional work generate the highest profit margins at business valuation, forensic, and litigation support (BVFLS) firms, according to a just released BVR study. Over a third (37%) of survey respondents cited litigation as the most profitable practice area, up significantly from 20% of respondents in the prior survey (2016). The second most cited profitable practice area is related to transactional work, with 26% of respondents listing this, up from 9%. Transactional engagements also topped the list of the fastest growing specialty areas. Rounding out the top five profitable areas are tax and estate/gift work, divorce matters, and fair value for financial reporting.

The study, the “BVR Firm Economics & Best Practices Guide,” 2019-2020 edition, is based on responses from over 160 BVFLS firms collected during September 2018 and October 2018. It is the largest and most thorough analysis of best practices in financial management, marketing, human resources, compensation, and professional and ownership standards. Data on over 330 BVFLS firm owners/partners and over 1,200 professional staff are included in the management and compensation sections.

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