Insider Media Limited

Law firm Irwin Mitchell, which has an office in Leicester, is to restructure so it can seek external capital and accelerate its growth plans. The move to become an alternative business structure (ABS) is designed so the firm can take advantage of changes to the legal profession set to be introduced by the Legal Services Act.

Irwin Mitchell, which currently operates as a limited liability partnership, has appointed Espirito Santo Investment Bank as its financial adviser to review its options for raising external capital.  It said all alternatives are under consideration and the preferred method and timetable for seeking external funding has yet to be finalised. 

National managing partner John Pickering 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."

In force from October, the Legal Services Act, dubbed "Tesco Law", will deregulate the legal services market allowing law firms more commercial freedom. Possibilities will include selling stakes to private equity investors or floating on a stock exchange. Mergers with organisations such as banks and supermarkets will also be allowed.

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

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.