Law sector consolidation predicted
The Midlands legal sector could see “considerable consolidation” before the end of the year as it faces a major date in the calendar.
Insolvency expert Matt Hardy, of Birmingham-based Poppleton & Appleby, believes small and medium-sized law firms could be absorbed by larger and more successful rivals.
He points out that law firms across the region are having to face major pay-outs in the next week or so to renew their professional indemnity insurance for the coming 12 months.
In many cases those premiums have risen to reflect the market with small and medium-sized firms having to find close to £100,000 to ensure they can keep practicing.
Hardy said: “The sector has already seen several examples of smaller firms being either taken over entirely, or having to merge with others simply to survive.
“The downturn may have taken longer to hit some of the law firms than it has the rest of the economy but we are finding that it is really taking its toll.”
