Law firm Shulmans switches focus for growth

The Leeds-based law firm had to reduce its headcount by a third following the financial crisis, but is now hiring again at all levels.

Demand for its volume conveyancing work fell off as the housing market went into decline, although Shulmans can see new opportunities for growth.

Jeremy Shulman, founder and chairman, declined to release financial information, but said the firm "is definitely moving in the right direction".

He added: "We have pointed the business in a direction which no longer makes it reliant on good trading conditions by majoring on innovative legal services designed to support business."

Unlike some of its rivals in the Leeds legal sector, Mr Shulman said the business has grown organically, rather than through mergers and acquisitions. In 2011, the firm celebrates 30 years in business.

He has identified at least eight growth areas for the firm. These include what he described as "legal business process work", employment law, public sector procurement notwithstanding spending cuts, property work on behalf of housebuilders and commercial property investors, commercial dispute resolution, debt recovery and other commoditised services and international work through the firm's membership of the Interlegal network.

Mr Shulman said the introduction of the Legal Services Act, which will allow external ownership of legal practices, would also create opportunities.

The new act could lead to large organisations such as AA or the Co-op entering the market, which could lead to contracts being put up for panels of providers with the necessary lawyers, IT platforms and managers, added Mr Shulman.

He said: "Our aim is to work for all those people as an outsource business. We are already doing it with some large public companies in this country. We are confident we will have our place in that new market."

As for attracting external equity into Shulmans, the firm is keeping its options open.

Mr Shulman said: "We are trading well. We have no real need in this plan for growth for outside equity, but that does not mean we... may or may not wish to consider it."

While he dislikes the label "mid-tier firm", he said medium-sized rivals include Gordons and Cobbetts, although he said Shulmans also competes with the Big Six law firms of Leeds – Addleshaw Goddard, DLA Piper, Eversheds, Hammonds, Pinsent Masons and Walker Morris – and smaller boutique firms.

Regarding his growth plan, Mr Shulman said: "It feels like we have got a good formula we are working to and it seems to be working.

"You have to look at the business every day and make sure the numbers are right. Never take your eye off the ball. While we are pleased with the direction we are going in, we are careful not to lose the context of the economy."

The plan was unveiled to staff last month. The business has also produced a new corporate logo, to replace the 10-year-old previous version.

Mr Shulman founded Shulmans in 1981 and took a 20-year lease on an office in York Place, Leeds.Tim Halstead, now managing partner, joined him in 1984 and they formed the partnership a year later.

Shulmans is now based on Wellington Street.

Mr Shulman said: "Our attitude to the future was very different from that of our competitors. The accepted route, when starting out, is to generalise and take offices in the suburbs. But by setting up in the heart of Leeds city centre we set down a marker that Shulmans was a commercial law practice from day one."

The practice grew on servicing the corporate finance and commercial and residential property markets – "classic pre-recessional work", said Mr Shulman.

"The key difference, as all professional services firms are experiencing, is with the collapse of the banks came the collapse in confidence and availability of finance, which affected all three areas of corporate finance, residential and commercial property.

"You couldn't run a practice on those today," he added. "It will come back, but it's going to take a while."

Mr Shulman, 58. is a former national chairman of the Law Society's Young Solicitors Group of England and Wales and council member of the Law Society. From 2001 to 2002, he served as resident of Leeds Law Society. He read law at Birmingham University

REPRESENTING A GLOBAL NETWORK

SHULMANS is the only UK member of the InterLegal, an international network of independent commercial law firms.

It is reckoned to be the largest global network and its members benefit by trading business with one another, said Jeremy Shulman.

It was founded by a group of French lawyers in 1987 as a European economic interest grouping but has since grown to encompass North and South America, the new EU member states of Eastern Europe and Australia.

Mr Shulman said: "I regard these people as our partners. You don't need to worry about all the traditional threats such as raids.

"You have local guys who understand the local needs of business. We are a good alternative to the international offices."

InterLegal has around 50 members.