Market monitor

QualitySolicitors aims to be in nearly 1,000 locations across England and Wales by the end of the year as a result of expansion and its tie-up with WH Smith, chief executive Craig Holt has said. He revealed that the retailer is receiving a flat rental fee and no referral fees.

Clients of law firms that provide retail financial services advice and convert to become alternative business structures could find themselves without access to a compensation fund or the firm’s professional indemnity insurance because of a hole in the Legal Services Act, it has emerged.

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.

This week’s news in brief includes details of London law firm EDC Lord & Co, barristers’ chambers 6 Pump Court and referral agency Contact Law launching an online fixed-fee legal advice scheme, ClickLaw24.com.

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.

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.

QualitySolicitors is preparing to eject a member firm for failing to meet the network’s quality standards, its chief operating officer told the Legal Futures Conference yesterday. Law Society chief executive Des Hudson also questioned QS’s use of the word “quality” in the brand.

As the interest of law firms in external investment goes up, “the interest of funders seems to be firmly in decline”, a new alternative business structures consultancy has found. A survey of 51 of the top 200 law firms by ABS Advisory Partners found that 12% thought it “very likely” or “likely” that they will seek direct external investment.

Dragon’s Den stars Theo Paphitis and Deborah Meaden are backing a major online initiative to provide small business customers of RBS and NatWest with all the online tools they need to run their operations, including legal services.

National law firm network QualitySolicitors has signed a “game changing” deal with WHSmith to place “Legal Access Points” in hundreds of the high street retailer’s stores following a successful pilot. All QS firms will also soon start opening on Saturdays and introduce a wide range of fixed-fee services.

A network that aims to help law firms dominate their local market and guarantees that it will increase their income has gone live. Seven law firms have so far signed up to GetSolicitors, which is billing itself as an alternative to national, branded networks by giving solicitors the tools to market and build their own brands.

The number of law firms in England and Wales has continued its inexorable rise, with 25% more in practice than a decade before, new figures have revealed. The Law Society’s annual statistical report also shows the impact of the recession on the largest City practices.