Legal Services BulletinNovember-December 2013

Jason AdderleyT: 0121 602 1445M: 07824 449 577E: j.adderley@erauk.net: @ERA_Legal

COMMENT FEATURES: see overleaf

MERGERS - EARLY WINS

Make Savings From The Moment

The Deal Completes

BIG WINS FOR SMALL FIRMSSize Isn’t Everything When

It Comes To Controlling Costs

The Editor

Jason Adderley is a consultant Partner with ERAspecialising in managing programmes of work forlegal and professional services firms.

He has 18 years experience of working withsolicitors and other professional consultants as aclient and as a service provider.

2020 VISIONAccording to Addleshaw Goddard The legal marketof 2020 will have 25% fewer lawyers & 20% fewerfirms. Fixed fees will replace billing hours.

ON THE OTHER HANDThere are 40% more practicing lawyers than 10years ago – a total in excess of 160,000.

IN DENIALBennett Jones Insolvency suggests that personalinjury lawyers in small and medium-sized firms areakin to climate change deniers by not recognisinghow their market has changed or planning for thefuture

PRACTICE TIPS

networkpartner withPII problems are hitting smaller firmsdisproportionately, particularly those with fewerthan 10 Partners.

According to the SRA, the number of practisingfirms declined by 400 in the year to September,partly due to the continual consolidation in thesector but often by firms simply closing.

Many of firms we speak to wonder how they canmake significant inroads into their costs. Ourapproach is to cease talking about how much?And instead ask - why?

With huge advances in the technology availableto law firms a cost and behavioural review hasgreater merit than a simple review ofexpenditure. For instance:

Why does your firm use so much paper?

Why does your firm store records the way itdoes?

Why does your firm have different contract enddates for similar types of expenditure?

Is DX still a necessity for your firm?

Silo-based reviews have their place but it’sonly by taking a strategic review ofexpenditure and behaviour that a firm cantruly understand the opportunities availableto them. Most firms don’t have the time or theexpertise. We have both.

As we went to press theSRA was announcing thatmore than 150 firmscould face closure byChristmas after failing toobtain PII on the openmarket.

It could have been muchworse of course followingthe exit of Berliner fromthe market.

Photocopiers

Mobiles

Office Supplies

Landlines

DX

#6LOOKING AT THE BIG PICTURE

Why ERA?

Over time law firms may developa tendency to procure on a silobasis.

IT may specify and buyhardware, software, print andtelecommunications equipmentand services.

Practice Management staff maydeal with office supplies, postage,archiving and printed stationery.

“ERA takes an overview of allprocurement functions,drilling down to understandthe implications of changesacross the silos.”

We’ll help you to identify wheresmall adjustments can have hugeimpacts.

Jason AdderleyT: 0121 602 1445M: 07824 449 577E: j.adderley@erauk.net: @ERA_Legal

IDEABIG HOW TO GENERATE SAVINGS

FROM THE MINUTE YOU MERGE

LSN Law Firm Forum November 2013

LSN Law Firm Forums provide a unique opportunity for you togather under one roof with others working in law firmmanagement, operational and support roles.

The next Forum is in London on November 11.

For more information visit: www.legalsupportnetwork.co.uk

BIG WINS for small firms

ERA is being consulted more and more after a firm hasmerged or made an acquisition of another practice. Ofcourse one of the very reasons for firms merging is todrive operational efficiencies and reduce overheadspend - which is our raison d’être.

Increasingly we’re asking the question – would an earlierengagement have helped even more?

For firms contemplating a merger oracquisition ERA can confidentially reviewexisting contracts, service levelagreements and tariffs to provide a clear

illustration of where savingscan be made quickly, and oftenwhere contingent liabilitiesmay be hidden.

Thus, rather than being a moretactical after-the-eventengagement ERA can make acontribution to getting the dealright in the first place,providing more certainty aboutthe savings opportunitiesavailable and helping tomanage risks.

Advance warning can also assist enormously in simplifyingthe process of merging different back-office cultures andworking practices. We can also help you to predict andmanage the repercussions of change for the newly mergedentity – so that you can concentrate on the strategic issuesof growth and cultural fit.

If you’re involved in discussions to merge or takeovera firm then please call us for a chat on 0121 602 1445.

We’ve been continually refining ouroffer to smaller firms during 2013 –with some startling results:

39%

31%

30%

24%

16%

For expenditure on products orservices less than £25,000 perannum we’re adopting a simplermethodology to deliver resultsquickly on a fixed fee basis.

Average Saving