Interesting to see the different options UK firms are taking to take advantage of external investment to develop the delivery of their legal services to an ever widening group of clients.
10 days ago, Slater & Gordon publicized their proposed acquisition of Russell, Jones & Walker and now Duke Street are taking a significant stake in the Group behind the Plexus Law - Parabis - valuing the legal services business at between £150m and £200m. (All subject to the SRA)
The sale of shares in Parabis, subject to clearance by the Solicitors Regulation Authority, will give the group sufficient fire power to pursue its plans for a series of acquisitions. Paul Lester, former boss of VT Group, will become chairman of Parabis after the deal, while Bob Scott, previously chief executive of Aviva, the insurer, will also join the board.
The stake sale is the latest, and biggest, in a series of deals in the legal profession. The investments have been sparked by the introduction of the Legal Services Act, which allows firms to raise money from outside investors for the first time. The legislation has been dubbed Tesco Law as it was predicted that big retailers would muscle into the market.
As the public are increasingly exposed to such comments in the Press, we will see more adventurous forays into this market place by Private Equity as well as Corporate Finance. What is your firm doing, how is your Board responding to this challenge to how your firm will survive?