Sell (Part of) Your Law Firm

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Some one wants to buy part of your law firm.
Let’s start with what happens in the corporate world when it comes to Mergers and Acquisitions. Using Royal Bank of Scotland as an example, they had a division called Direct Line that they no longer wanted (or needed the cash) so decided to sell. A buyer comes along, and it is sold. Very easy – it is almost an every day event.
The buyer sees a range of attractive scenarios – maybe a revenue stream, the opportunity to make the service more effective/efficient, bring skills that are not currently available, synergies, cross-selling etc.
Over in the legal world, however, this does not happen. But it can change, if law firms take a fresh perspective, and if they come listen to what potential buyers can offer.
In the very specific area of Legal Outsourcing, most law firms greater than 100 partners are sitting on delivery assets that:

  • Are not high value add advisory activities
  • Are relatively inefficient due to lack of skills
  • Are probably underinvested in
  • Have limited consolidation/centralisation

In short, they could be more effective/efficient and lead to greater revenues. In reality, it is an asset that has zero value placed on it, but only if viewed with a “traditional” perspective.

The fact is that there are now opportunities available to transfer these “hidden assets” into different commercial models (whether sold, turned into a JV, or just operated on a commercial footing). Viewing LPO as an opportunity – whether M&A or just commercialisation – requires a different mindset to that in place in most law firms.

If you are one of the ones who want to realise significant financial gains from being different then you should be exploring the market now, as of early 2013. There are buyers and potential partners who are ready and willing to get you there.

Contact me on [email protected] today.

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