Guest comment: That legal big bang – still waiting for the Dyson moment

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We are now a little over two years since the Solicitors Regulation Authority (SRA) began accepting applications from would-be alternative business structures (ABSs), and a little under two years since it issued the first licences. I have a sense that some are disappointed and a little underwhelmed by what has happened since then.

In the main they shouldn’t be – the transient nature of news, has made people forget just how many interesting and different legal services providers have emerged in the last two years. But from one perspective, and I will come back to this later, I can see their point. Continue reading “Guest comment: That legal big bang – still waiting for the Dyson moment”

Barely into 2014 another PE house bets on law as Permira puts £122m into LegalZoom

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It’s a deal that brings together one of the most touted ‘alternative’ legal service providers with one of Europe’s top private equity investors – just a few days into 2014. The announcement this week that Permira is investing over £100m in LegalZoom is a reminder of the growing interest from financiers in the legal sector.

Fried Frank Harris Shriver & Jacobson advised European private equity house Permira on the £122m investment in US-based LegalZoom making it the largest shareholder in the much-tipped online legal document company.

Continue reading “Barely into 2014 another PE house bets on law as Permira puts £122m into LegalZoom”

Guest post: The rise and rise of Slater and Gordon – a tale of the ABS era

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If anyone wanted to see what alternative business structures (ABSs) can achieve, they need look no further than Slater and Gordon (S&G).

If you take into account the sum announced as going towards buying Simpson Millar – a deal currently on ice – S&G has committed around £150m towards its UK expansion since first announcing the acquisition of Russell Jones & Walker in January 2012. Could it have achieved this without being a listed company? I’m no financial expert, but I doubt it; raising money through share issues has been key, although debt levels are up sharply as well. Continue reading “Guest post: The rise and rise of Slater and Gordon – a tale of the ABS era”

Blood from a stone: Walker Morris withdraws from personal injury market as Co-op Legal announces PI job cuts

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The post-Jackson reforms have claimed further victims as Leeds-based Walker Morris has announced it is to close its personal injury (PI) business, while Co-operative Legal Services has confirmed its personal insurance division is undergoing a restructuring which is likely to result in around 60 job cuts.

Around 48 staff are at risk of redundancy as a result of the closure at LB100 firm Walker Morris’ PI arm, named Distinctly Legal, with the firm blaming ‘the Legal Aid Sentencing and Punishment of Offenders Act (LASPO) changes and the continuing turmoil in the personal injury marketplace.’

Continue reading “Blood from a stone: Walker Morris withdraws from personal injury market as Co-op Legal announces PI job cuts”

Game changers – the AA enters legal services market via Lyons Davidson tie-up

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Touted as one of the potential game changers likely to enter the post Legal Services Act arena, the AA has fulfilled market expectation – albeit a little later than its closest rivals – by securing alternative business structure (ABS) status and entering into a joint venture with Bristol-based Lyons Davidson.

AA Law, which will initially handle personal injury (PI) work and other litigation associated with car accidents suffered by AA members and customers, will start trading on 1 December, with employment and contract services likely to be added in the future. Continue reading “Game changers – the AA enters legal services market via Lyons Davidson tie-up”

Entries and exits: ‘Tesco Law’ licences hit 200 mark but a few early movers stumble

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Despite a handful of well-publicised problems at alternative business structures (ABS), there are no shortage of entrants looking to pursue the ‘Tesco Law’ model. Just how many was confirmed this week when it emerged that that Solicitors Regulation Authority (SRA) has now awarded more than 200 ABS licences.

The move is a startling figure coming less than two years since the regime to consider ABS applications went live. City media boutique Wiggin became ABS number 200, and will operate as an ABS from the start of next month, while corporate boutique firm Gunnercooke came in at number 201 and is to become effective as an ABS structure in mid-November.

Continue reading “Entries and exits: ‘Tesco Law’ licences hit 200 mark but a few early movers stumble”

Virtual law: Mercedes-Benz UK GC sets up Radius Law

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The virtual law space has a new entrant after former Mercedes-Benz UK group general counsel and head of compliance Iain Larkins this month left his role at the luxury vehicle company to found virtual commercial firm Radius Law.

Speaking to Legal Business, Larkins, who has worked in-house for 14 years, says the fundamental premise of Radius Law is to provide good commercial advice in areas including contract, disputes and competition at a ‘highly competitive’ rate, something he says is still difficult to achieve at many traditional law firms. Continue reading “Virtual law: Mercedes-Benz UK GC sets up Radius Law”

Outsourcing giant Capita unveils plans to enter legal market as first ABS posts healthy financial results

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Outsourcing giant Capita is to re-enter the UK legal market, having reached a conditional agreement to acquire Optima Legal Services, subject to approval from the Solicitors Regulation Authority (SRA). Capita submitted an alternative business structure (ABS) licence application last week.

In an ironic twist, Capita’s plans have emerged three years after the SRA ordered Optima to break ties with the outsourcing group after the regulator found the relationship had breached rules governing non-lawyer investment in firms.

Continue reading “Outsourcing giant Capita unveils plans to enter legal market as first ABS posts healthy financial results”

Return of the accountants: KPMG and EY consider ABS

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Global accountants including KPMG and EY have the UK’s legal sector firmly in their sights as they consider their options under the Legal Services Act (LSA) in a move said by one tax partner at a leading City law firm to be ‘clearly a threat’.

Last month it emerged that KPMG is looking at an alternative business structure (ABS) conversion in a bid to expand its legal services capability. EY, meanwhile, has the position ‘under review’ and PwC is also understood to be considering its position. Deloitte was the only one of the Big Four accountants to deny any plans to set up an ABS.

Continue reading “Return of the accountants: KPMG and EY consider ABS”

ABS growing pains: Co-op Legal Service’s losses simply teething troubles, says GC

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With news that Co-operative Legal Services (CLS) has posted a £3.4m loss in the for first half of 2013, the group’s recently installed general counsel Alistair Asher says the business is still in its infancy and will flourish, provided it has the appropriate levels of investment. The loss comes despite turnover in the Co-op’s legal arm growing by 5.8% on last year to £18.1m.

GC to the board of The Co-operative Group, Asher said: ‘The top line is growing so the bottom line will improve. CLS is still a start-up business so it is not a case of turning anything around, it’s actually about developing the business and moving forward. CLS is one of the biggest business opportunities for The Co-operative Group right now. We have got the business model we need, we just need to give it support and investment so it can grow.’ Continue reading “ABS growing pains: Co-op Legal Service’s losses simply teething troubles, says GC”