How Recovery First recently assisted in a law firm closure

law firm closure

Closing a law firm is a significant decision that involves meticulous planning and careful execution. Recovery First recently assisted Mooney Everett, a law firm who had taken that decision. We provided essential guidance and expertise, ensuring a smooth, compliant, and financially sound closure for the law firm.

If you have made the decision to close a practice, contact us today to find out how we can assist.

Background

The law firm in question had been operational for 15 years, serving a diverse clientele with various legal needs. When the owner made the decision to cease practice, it was crucial to ensure that the firm’s work in progress was properly valued and that clients continued to receive high-quality legal representation. The owner turned to Recovery First for professional guidance and support during this critical period.

Challenges

Several challenges were inherent in the closure of the law firm:

  • Valuation of work in progress: Ensuring the best possible value for ongoing cases.
  • Client care: Ensuring client case files were seamlessly transferred to competent solicitors.
  • Regulatory compliance: Managing the closure in accordance with the Solicitors Regulation Authority (SRA) requirements.
  • Smooth transition: Achieving an orderly and straightforward closure process.

Solution provided by Recovery First

Recovery First played a pivotal role in addressing these challenges through a structured and supportive approach:

Valuation and transfer of cases

By using Recovery First to manage the completion of the firm’s live client files they ensured they were able to obtain optimal value for their work in progress. This included a thorough assessment and strategic planning to maximise returns.

Cases were transferred in various tranches to our panel firms, ensuring a manageable and organised process. This allowed for continued attention to ongoing work and minimised disruption.

Client transfer

Ensuring client cases were transferred to solicitors who specialised in their specific type of cases was a priority. Recovery First facilitated this through their panel of  solicitors, ensuring clients received continued high-quality legal services.

Orderly closure process

The overall closure process was managed smoothly and straightforwardly. Recovery First’s experience and structured approach ensured that the transition was orderly and efficient, reducing stress and uncertainty for the law firm owner.

Outcome

The law firm closure was successfully managed, with significant benefits realised:

  • Optimised value: The value of the work in progress was ring-fenced for the benefit of firm and transferred efficiently, securing the best possible financial outcome.
  • Client continuity: Clients were reassured and well taken care of, thanks to the expert matching process facilitated by Recovery First.
  • Regulatory compliance: The firm complied with all necessary SRA regulatory requirements, avoiding legal complications and/or disciplinary action.
  • Smooth transition: The transition was executed smoothly, with minimal disruption to ongoing work and clear communication throughout the process.

Testimonial

John Mooney from Mooney Everett shared their positive experience:

“When I decided the time had come to step down from law firm ownership and go through a managed closure, the help that I was given from Recovery First was invaluable. I needed to obtain the best value for our work in progress, whilst ensuring that our clients were looked after by solicitors who were experts in their type of cases.

By using Recovery First, I was able to transfer cases in various tranches while dealing with the formalities of closure with the SRA. The process was smooth and straightforward, and I would recommend Recovery First to anyone wishing to restructure their firm or go through an orderly close down.”

How Recovery First can assist with law firm closure

Making the decision to close a firm can be daunting. Whether you decide to close your law firm due to retirement, a change in career direction, or financial distress, this process involves numerous legal and regulatory considerations that must be addressed before the firm ceases to practise. You will want to ensure your firm gets the best value for its WIP. It is also important to ensure your clients are well looked after when your firm closes.

Our process involves discreetly selling a firm’s cases to multiple purchasers on our panel of solicitors. This mitigates the risks to the buying firms and results in a higher value for the work in progress (WIP) being recovered, whilst ensuring SRA compliance.

Our team manage the transfer of files from start to finish, placing case files with the best firms suited to deal with their unique client matter.

Our model can also help to avoid any successor practice issues and post six year run-off cover issues that may arise.

We also provide a complementary service for professional advisors that assist in the closure of law firms, such as advisory only accountants and indeed solicitors specialising in regulatory matters advising their peers.

We guarantee 100% confidentiality for all clients. If you would like to find out more about Recovery First’s process, feel free to get in touch today using the details below.

 

It's never too late to speak to Recovery First. Contact us now in the strictest confidence

Sally Dunscombe:

sally.dunscombe@recoveryfirst.co.uk

David Johnstone:

david.johnstone@recoveryfirst.co.uk

Telephone:

01357 440140

Manchester Address

106 Kennedy Building

Murray Street

Manchester

M4 6HS

Registered Address: 

North Torfoot

Drumclog

Strathaven

ML10 6QG