Growing numbers of legal practices are facing financial pressures, both as a result of the overall economic downturn and sector-specific challenges, including changes to legal aid and no win, no fee arrangements and significant increases in the cost of professional indemnity insurance, due to a reduced number of providers.
The changes to no win, no fee arrangements from April 2013 has created a more competitive legal marketplace, in which law firms need to undercut each other in order to win business.
As a result of this key source of income being reduced, many smaller firms are now struggling financially.
If your own firm or a legal firm for which you act is struggling, expert help is at hand. Milsted Langdon in Bath, Bristol, Taunton and Yeovil is experienced in working with a wide range of legal sector clients, from sole practitioner solicitors to multi-partner practices and barristers, and understands the challenges the profession faces.
Our team has particular expertise in business turnaround and insolvency issues and have assisted a number of law firms to get back on a sound financial footing.
If a legal firm is struggling, then seeking professional advice from a business turnaround expert at the earliest opportunity is crucial, to ensure that the maximum number of options are available for restoring the practice to financial health.
We also have a strong track record of assisting in brokering mergers in which small practices are absorbed into larger ones on terms that are not unduly prejudicial to the owners of the practice being taken over.