Analysing fee income, fee—earning capacity and fees per fee earner—worked example
Analysing fee income, fee—earning capacity and fees per fee earner—worked example

The following Practice Management precedent provides comprehensive and up to date legal information covering:

  • Analysing fee income, fee—earning capacity and fees per fee earner—worked example

There is little point in collecting data on a firm's financial performance if that data is not used to improve its performance. A firm’s fee income, fee-earning capacity and fees per fee earner are all useful indicators of its current financial performance. This precedent provides a worked example showing how to analyse these indicators and undertake a modelling exercise to understand the potential financial impact if any of the current variable figures change.

To complete this analysis and modelling exercise you need to follow a three–step process:

  1. step 1—calculate key variables

  2. step 2—calculate and analyse the firms current fee income, fee-earning capacity and fees per fee earner

  3. step 3—undertake a modelling  exercise to understand the potential financial impact of adjusting any of the variables

This precedent illustrates how you would undertake steps 2 and 3 of this process.

A blank version of this precedent is available for use—see precedent: Analysing fee income, fee-earning capacity and fees per fee earner (blank).

Please click for an Excel version of this precedent. In this version each worksheet has auto-calculation formulas embedded within it meaning you only need to enter the raw data into the relevant cells/columns and the result will be calculated for you. You will also find separate illustrative worksheets within this spreadsheet sh

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