Alternative business structures

The Ministry of Justice is to review the international reaction to alternative business structures early next year, it announced yesterday. It will monitor “the international acceptance” of ABSs, with an initial review in February 2012.

The magic circle firms could be worth £6.7bn if they went public – equivalent to £3.9m for each partner – the first stockbroker assessment of the viability of law firm listing has estimated. An analyst note from Peel Hunt LLP said there is “a real economic case” to be made for public market listing.

The Australian legal business consolidator Integrated Legal Holdings, one of the country’s (and world’s) two stock exchange-listed law firms, has announced a 96% increase in profits, and 18% rise in turnover, for the first half of its financial year.

The Legal Services Board yesterday approved the Council for Licensed Conveyancers’ application to become the first licensing authority for alternative business structures, despite the opposition of the Lord Chief Justice.

The Solicitors Regulation Authority’s application to become a licensing body for alternative business structures has been endorsed by the Legal Services Board’s consumer watchdog, but with reservations. The Legal Services Consumer Panel expressed disappointment that some recommendations it made during consultations were not adopted.

Merger has been on the minds of three-quarters of large law firms during the past year, but inadequate preparation for the negotiations means few are seeing it through, new research into the 200 practices has claimed.

The Bar Standards Board is to regulate advocacy focused alternative business structures and allow barristers to conduct litigation, its board decided yesterday. However, it has placed significant restrictions on the range of entities it is prepared to regulate.

Manchester firm Pannone is to target big businesses with a white label legal services offering, it announced today. From next week it is pulling all of its white label services into a standalone and separately branded division – Affinity Solutions – to partner with organisations with a large customer base.

More than three-quarters of law firms have changed their plans to reflect the coming of alternative business structures, but firms seeking to attract investors will have to develop credible growth strategies. Neil Kinsella, managing partner of Russell Jones & Walker, said his firm had already begun to draw up a list of potential law firm acquisitions.

Irwin Mitchell today became the first major law firm to announce its intention to seek external investment. The Sheffield-headquartered national practice has appointed Espirito Santo Investment Bank as its financial adviser to review the options.