Market monitor

A law firm with offices across south Wales and Gloucestershire has become an alternative business structure to assist ambitious plans to exceed its rapid growth in 2017 and enable its non-lawyer chief executive to become an investor.

It should not be “beyond the wit of man” to design a system for low-value personal injury (PI) claims where insurers and their customers handle cases without the involvement of lawyers, the head of one of the country’s biggest insurance companies. The comments came alongside a claimant warning that the PI reforms left plenty of “meat” for CMCs.

The Fellowship of Independent Evangelical Churches (FIEC) has set up an alternative business structure to provide legal services to its 500 member churches and other Christian groups. Edward Connor Solicitors, a charity regulated by the Solicitors Regulation Authority, went live on 1 March and is named after FIEC’s founder, Edward Poole-Connor.

A dispersed commercial law firm based in Birmingham is offering solicitors the chance to set up their own firms while working as self-employed consultants. Sandip Sohal, director of My Business Counsel, said two partners from a London media firm and two more from an international City practice had taken up the offer.

Law firm consolidator Metamorph Law has unveiled its first acquisition of 2018 with a deal to buy leading Shropshire general practice Terry Jones Solicitors, which has a turnover of around £5m. Following four acquisitions last year, Metamorph said this latest addition meant it was looking to generate a fee income in excess of £23m in 2018.

High street solicitors are losing out to specialist conveyancing businesses in capturing clients, new research has shown, but all lawyers still have much to improve on client communication. More than a third of clients would even consider paying more for a premium service, it found.

New competition since the introduction of alternative business structures, along with client demands is changing the face of the legal market, research has suggested, with the number of ABSs now topping 1,000. It also showed that 44% of law firms are now incorporated companies, while the number of traditional partnerships shrinking to only 17%.

Listed law firm Gordon Dadds has made its third acquisition in a month in buying Cardiff firm Thomas Simon. The acquisition vehicle is paying £1.875m plus an amount related to net tangible assets. If all the turnover targets are met for the four firms it has bought since listing, Gordon Dadds will have paid around £20m.

The plan by Carillion Advice Services to become an alternative business structure looks to be at an end after the business was bought by magic circle firm Clifford Chance. We also report on two private equity backed ABSs that have used their financial muscle to expand, and a private client firm that has decided to enter regulation with the CLC.

Conveyancers saw their first annual drop in workload since 2011 last year, with volumes down 12% to under a million transactions, according to new research. It also found that the number of conveyancing firms has dropped by 28% over the past decade.