Irwin Mitchell looks at restructure in law services shake-up

LAW firm Irwin Mitchell yesterday announced that it planned to restructure its business and seek external investment to help it grow.

The firm, which has offices in Leeds and Sheffield, said that it planned to take advantage of the provisions of the Legal Services Act to restructure as an Alternative Business Structure (ABS).

Irwin Mitchell has appointed Espirito Santo Investment Bank as its financial adviser to review its options for raising external capital.

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The Legal Services Act was created to open up the legal services market.

It aims to increase competition and consumer choice. It introduces Alternative Business Structures, which will enable organisations such as supermarkets and banks to offer legal services.

In a statement, Irwin Mitchell said: “At present, all alternatives are under consideration and the preferred method and timetable for seeking external funding have yet to be finalised.

“In preparation for becoming an ABS, Irwin Mitchell is today announcing that it will be restructuring its operations, with the adoption of a two-tier structure which will see the creation of a new corporate vehicle.

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“Irwin Mitchell LLP will remain the main operating business, with the new holding company becoming admitted with a view to its becoming the controlling member of Irwin Mitchell LLP.”

John Pickering, the national managing partner of Irwin Mitchell, said: “The Legal Services Act will create exciting growth opportunities for strong, well-financed legal services businesses to accelerate their growth plans.

“Irwin Mitchell intends to be at the forefront of these changes and we have therefore taken the decision to seek external investment to further our ambitious plans for the business.

“Conversion to an ABS will broaden our access to capital and enhance our funding flexibility as we execute our strategic growth plan, while ensuring that we can continue to provide the very highest standards of service to our clients.”

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Irwin Mitchell employs around 2,100 staff and more than 150 partners. The firm provides advice to 200,000 clients a year.

Apart from Leeds and Sheffield, the firm has offices in Birmingham, Glasgow, London, Manchester, Newcastle and Bristol.