Deal demonstrates that ABS frontrunner means business
Private equity firm Palamon Capital Partners has bought a majority stake in QualitySolicitors (QS).
The purchase—for an undisclosed sum—marks the first major private equity investment in the high-street law firm market.
QS, which launched in 2009, has a network of more than 200 law firms, each branded with the pink QS logo. Law firm members retain their individual identity but benefit from a central marketing spend and brand recognition. QS has also installed “legal access points” at branches of WHSmith across the country.
The firm aims to become a household name, with up to 40% of the high-street legal market, which is currently worth a total of £10bn in annual revenue, according to Palamon.
The investment will help fund a TV advertising campaign and marketing redesign, as well as growing central operations and sales functions.
Craig Holt, chief executive of QS, says Palamon’s “understanding of the legal services market and analysis of our business model convinced us that they could provide the strongest strategic support to help us achieve our ambitious growth plans”.
Owen Wilson, associate principal at Palamon, comments that QS “has significant first-mover advantage for consolidating the high-street legal services market”.
Steve Richards, the former chief executive of Interflora, has been appointed to the board as chair. He says: “The Legal Services Act has created a once-in-a-generation opportunity to create a strong national network of local solicitors operating under a trusted brand.”
National personal injury firm Irwin Mitchell has said it intends to convert to an alternative business structure, once regulations permit, and will seek private equity investment. However, a spokesperson said “no imminent announcement” on a deal was expected.
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