The legal media is rife with acquisition news and ‘talks’ between businesses this year. Large regional law firms – and others – are on the hunt. If you’re considering making your acquisition move, don’t let a fear of financing your purchase put you off.
Click on any legal news website and you can see the appetite for acquisition. Brokers are calling out to struggling firms to identify themselves for a takeover opportunity and sadly, due to the impact of the pandemic, the number of firms in crisis is on the rise.
Our client law firms are unlocking their cashflow to fund acquisitions, and fast.
Seize the day
Opportunities to acquire are in abundance, according to Law firm strategy consultants, Andrew Hedley, Andrew Roberts and Paul Bennett, who recently penned an insightful blog for the Law Society’s Law Management Section. In this article, they outlined the pressures some small, mid-tier and large law firms are under, what kind of firm might be looking to exit the market, and why.
We don’t think for a minute that firms aren’t aware of these opportunities – even if they need a neutral hand to make an introduction. The law firms we fund often have a handful of acquisition talks on the go at any one time, and they’re able to talk with confidence because they’ve unlocked their cashflow and have a strong strategic proposition.
In the news
Switalskis acquisition of personal injury specialists Atherton Godfrey is just one of the most recent examples of a well-funded, strategically placed regional firm that’s on the hunt. JCP Solicitors is another, as it has grown substantially over the past 5 years thanks to clever, well-timed purchases of smaller firms in Wales. In December, growing East Midlands firm Nelsons captured one of its neighbours, Leicester-based family firm Glynis Wright & Co, to help it achieve its aim of being a £20m business.
Enable Law, part of the Foot Anstey Group, has become one of the largest specialist medical negligence firms in the south of the UK following the acquisition of three of Blake Morgan’s specialist teams last August. It has a sharp eye for opportunities and a strong brand to capitalise on.
Being on the hunt for acquisitions shouldn’t be seen as negative. In some cases, successful firms have identified synergies and ways to enhance their services and value through a merger. In October 2020, John Hyde, a reporter at The Law Gazette, suggested just that.
It’s not just law firms that are changing the landscape. Frenkel Topping’s ‘recent talks’ with NAH and now its double acquisition of Partners in Costs (PIC) and A&M Bacon may also influence others to get closer to legal services. Only a few weeks ago, First4Lawyers impacted the RTA market by announcing it will open a law firm and keep RTA enquiries to itself.
Unlock your cashflow & act now
If you’re considering joining the acquisition trail, it’s with noting that some law firms have held back on moving into new, larger premises or have pared back physical assets due to remote-working. Start your conversation now, before your target law firm makes a long-term investment that might impact acquisition costs.
Now is the time for forward-thinking law firms to make their move. Well-funded law firms use disbursement funding products to fund acquisitions as they understand what assets they have and how to finance them – unlocking their potential.
As Matt Gwynne, SpectraLegal Finance, explains:
“Disbursement products exist for sustainable law firms with well-managed assets and allow them to unlock their balance sheet. Specialist funding for the legal sector is a very good place to start if you’re looking to unlock cashflow to acquire – without losing equity or control.”
Our ER+ product is an ideal acquisition funding tool
We can act quickly to give you a capital injection while the firm keeps control of the business.
The SpectraLegal Finance Equity Release (ER+) product removes the disbursement expenditure burden from the law firm helping you unlock your cashflow to reinvest for growth.
ER+ OFFERS LAW FIRMS:
- A facility that is able to grow as the firm grows.
- The firm is able to monetise assets that are traditionally locked up for many years.
- Gives the firm the power to negotiate better terms with suppliers.
- Cash is freed up for marketing services and investment in client files to maximise the value of their claims.
- Financial leverage enables partners to conserve cash while generating a higher PEP.
- The ability to acquire – and move quickly
If you’re considering an acquisition, talk to us about unlocking your cashflow to enable a healthy, positive and quick move, before your competitors get there first.
To talk about our ER+ product or other solutions, please contact Matthew Gwynne today.