Legal consultancy offers exit strategy for PI firms “without firesale”

Print This Post

5 February 2013


Callan: managed process

Personal injury (PI) law firms that are looking to exit the market as a result of the 1 April Jackson reforms are being targeted by a new consultancy that promises they can retain high levels of the work-in-progress (WiP) on their book of cases.

London-based Consultant Lawyer Solutions – known as Consula – has launched an exit strategy that it says is “specifically designed” for PI firms.

It is one of a number of options that have emerged for PI firms looking to move on their caseloads ahead of 1 April.

Consula director and principal consultant, Martin Callan, who is also a Council member at the Chartered Institute of Legal Executives, said the strategy would “help firms to exit the market in an ordered, structured way avoiding any firesale of their book of work and deliver a better financial return than other providers currently in the marketplace”.

He continued: “The current market in England and Wales has in excess of 3,000 providers who will be directly affected [by the Jackson reforms]. In fact, a significant number of firms that specialise in personal injury are already beginning to be affected by the shifting market, resulting in the growth of a range of exit strategies by a number of providers. The vast majority of those schemes, however, barely provide up to a 40% return on WiP.”

He said Consula’s solution ccould deliver up to a 90% return on WiP, “which could help those firms in financial difficulty avoid insolvency”.

The process involves a firm transferring its entire book of work to a panel of firms through a managed process that allows it to withdraw “sensibly” from the PI market, he explained.

It involves a team of professionals who handle the entire transfer process and includes dealings with clients and advisors.

Mr Callan said: “The service is likely to be very attractive to law firms facing pending insolvency, cash flow difficulties and re-structures. It is also likely to attract firms wishing to exit the market voluntarily due to retirement or those who simply wish withdraw from this highly competitive market.”

Tags:



One Response to “Legal consultancy offers exit strategy for PI firms “without firesale””

  1. Since becoming involved in this, there’s been considerable interest as there appear to be a lot of firms out there considering their position. This is definitely an interesting time to be a legal practitioner!

  2. Martin Callan on February 6th, 2013 at 4:48 pm

Legal Futures Blog

The digital deed: what will the digital mortgage mean for property transactions?

Andrew Lloyd 2017

Over the past 20 years, nearly all aspects of our financial lives have migrated online, from tax returns to banking. Yet arguably the most important and protracted financial process in our lives has remained doggedly devoted to the paper based world. A single signature in Rotherhithe, south-east London, on 4 April, however, may have just lit the touch paper for transforming this process. By signing the UK’s first ever digital mortgage through the government’s new “sign your mortgage deed” service, a signal was sent that the home-buying process is finally on course to be digitised, simplified and streamlined.

May 24th, 2018