Are There Other Monetary Issues to Consider that Are Unique to Personal Injury Practices?

There are. It requires a lot of upfront money, so more financing is needed than in other practice areas. Unlike other practice areas, there is a significant time lag for firms to obtain revenue that is solely theirs, because most of the revenue during the first year will be from inventory subject to a revenue share with the seller. For firms with an hourly model, there is usually only a 60-90 day time lag, and 100% of the revenue goes to the buyer.

Additional capital is also needed to fund the operating account and cover new case costs. In short, buyers need a strong appetite for risk because so much financing is required.