English firms prepare to raise money through ABS
10 Mar 10
Up to 60 firms of all sizes expected to seek external capital from next year
Up to 60 law firms in England & Wales could be preparing to seek external investment when this becomes possible next year, according to a report in today's Times.
The paper reports that 20 in the City of London, and as many as 60 across the jurisdiction, are hoping to take advantage of the new structures permitted under the Legal Services Act 2007, which comes fully into effect on 6 October 2011.
Three of the City firms are said to be considering a stock market flotation to raise money for future acquisitions. However small and mid-tier practices are among the most enthusiastic, particularly those whose type of work is capable of being streamlined through investment in IT.
There is also interest in third party funding as an alternative to bank borrowing.
Although many firms remain reluctant to give up sole control of their businesses, Jeremy Black of accountants Deloittes predicted that no one would remain untouched by the changes.