Harvard Professors Break Down a $6M Legal Consulting Deal
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Apr 8, 2025
Dive into the fascinating world of legal consulting as experts dissect a $6 million deal centered on expert witness placement. The conversation uncovers the challenges of project-based revenue and sporadic customer loyalty, raising essential questions about business viability. Insights from Harvard Business School illuminate potential buyer profiles who could succeed in this niche market. With a focus on trial prep and matchmaking dynamics, this episode offers a riveting exploration of whether this intriguing business is worth the investment.
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insights INSIGHT
Project-Based Business Model
This legal consulting firm operates on a project basis, much like contractors.
This model creates uncertainty as cases can settle unexpectedly, impacting resource allocation and profitability.
insights INSIGHT
Revenue Quality Concerns
The revenue quality isn't great due to its project-based, non-recurring nature.
Customer loyalty is uncertain, making it difficult to establish a strong market position.
insights INSIGHT
Expert Dependence Risk
The firm's small size, likely with only a few experts, creates dependence and vulnerability.
Experts could leave, significantly impacting the business, like a baseball team with only one pitcher.
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A legal consulting firm for expert witness placement sparks debate among the hosts and special guests from Harvard Business School—would you buy it?
Business listing: https://thefirmadv.com/Listing/Expert-Witness-Prep-Placement-for-Law-Firms-For-Sale
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In this episode, Mills and Heather are joined by Royce and Rick from Harvard Business School and the “Think Big Buy Small” podcast to break down a unique legal consulting firm focused on expert witness placement and trial prep.
Check out the podcast here: https://podcasts.apple.com/us/podcast/think-big-buy-small/id1751989991
Despite strong profit margins and remote operations, this business raises flags due to its project-based revenue, uncertain customer loyalty, and a hefty valuation. The crew explores whether this is a deal worth pursuing—or passing—and what kind of buyer might actually make it work.
Key Highlights:
Breakdown of a $1.3M cash flow legal consulting business listed for $6.15M
Discussion around project-based revenue and lack of recurring customers
Royce and Rick share insight from years teaching ETA at Harvard Business School
What kind of buyer would make this work (and how a strategic fit could help)
Buyer fit, sales process, and the importance of niche expertise
Why this business might be overpriced and what a reasonable multiple looks like
The importance of understanding what a teaser really says (and doesn’t)
Acquisitions Anonymous - #1 for business buying, selling and operating