Joanne Cracknell & Jonathan Angell discuss the best strategies for reducing risk in law firm acquisitions
- Covers the key components to a successful law firm acquisition: planning early, implementing a strategic business plan, conducting thorough due diligence and patience.
Consolidation activity is commonplace within the legal services market and 2018 drew to a close with several high-profile transactions.
The decision to acquire another business can be extremely effective in the growth, innovation and diversification of a law firm but such decisions cannot be made hastily. Buying another business can be challenging and complex, so careful planning and management, together with conducting proper due diligence, are essential to a successful transaction.
Every transaction is unique, so there is no ‘one-size-fits-all’ approach or silver bullet for risk management leading up to, during, and after the transaction. However, certain risks are often overlooked when legal firms make acquisitions. The due diligence exercise should be a comprehensive appraisal of the assets and liabilities of each firm. One of the principal aims of such an exercise is to
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