A Blue Chip Result for ASX-Listed IPH Limited

Australia’s first publicly listed Intellectual Property practice has reported its 2016/17 full year financial results. The financial results are blue chip not so much because of the increase in revenue, which was impressive, but because of the continued level of profitability. Revenue increased substantially by 18% however a major acquisition did not play a role in the previous year’s revenue. In October 2016, IPH announced the acquisition of Ella Cheong (Hong Kong) Limited and its subsidiary Ella Cheong Intellectual Property Agency (Beijing) Company Limited for the equivalent of A$27 million. For the financial year 2016/17, IPH achieved $186 million revenue and EBITDA of $68.7 million (stat

A US court considers the goodwill value of a partner's equity in a large law firm even when that

In a matrimonial case, an appellate court considers the decision of a lower court in relation to the goodwill value in a large law firm. Excerpts below. Please note that each paragraph is a separate excerpt and there may be text in-between that has not been included. For the full text, see http://caselaw.findlaw.com/nj-superior-court-appellate-division/1870170.html It is a settled legal question that intangible goodwill may attach to an attorney's interest in a professional practice. Dugan v. Dugan, 92 N.J. 423, 433 (1983). If found, the value of goodwill is subject to the equitable distribution claims of the non-titled spouse. Ibid. However, the determination of the amount ascribed to good

The Goodwill Value of Sole Practitioner Legal Practices - Is There a Rule of Thumb?

I recently received the following query about the value of legal practices: “Some have suggested that they should use ‘1/3rd of gross profit for the preceding 12 months’ (or the average of the preceding 24 or 36 months) as a sale price. Is there any merit to this formula?” My response was: "There is some merit to this formula or rule of thumb. However, some practices are worth more and some are worth less. "Factors (not exhaustive) to consider: 1. The formula you mention should be for goodwill and usually equipment combined. 2. In addition is the value of WIP, outlaid disbursements and debtors 3. No two practices are the same and the value depends on the proportion of work by type

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