Large number of firms considering ABS move with non-solicitors' business
More than 40% of top UK law firms are considering joining with non-solicitors’ businesses in an alternative business structure (ABS) in the next two years, with accountancy firms the business of choice.
Of 21 top-40 firms which took part in a larger survey, nine are considering the move. Three firms describe the move as “likely”. Six of the firms are considering seeking external finance, while five are looking at private equity—one of them seeking to raise more than £50m.
Giles Murphy, head of professional practices at accountancy firm Smith & Williamson, says: “This could transform not just the provision of legal services, but the entire professional services sector within a very short space of time.”
Among top-100 firms, 16 out of 54 which responded showed interest in joining with a non-solicitors’ firm, indicating about 30% of the top 100 may seek to become an ABS.
Accountancy firms were the favourites for a tie-up, followed by patent agents and surveyors.
Ten of the top-40 firms acquired a team of lawyers from a competitor in the last year. Overall, more than a third of top-100 firms acquired a team last year.
The Institute of Chartered Accountants in England and Wales applied to become an ABS regulator in December. The Law Society is to challenge the application.
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