Is it time to move on? Signs you could benefit from file acquisition
The impact of the coronavirus pandemic on businesses of all sizes and across all industries in Ireland has been considerable, and the legal sector, in particular, has found itself thrust into uncertainty in these unprecedented times. Even without the pandemic, the legal landscape has undergone a period of accelerated change, along with many challenges, over the last decade, resulting in long-term implications for businesses.
Understandably, the constant evolution of the legal sector coupled with the economic uncertainty brought about by COVID-19 has meant that many law firms and practitioners are reevaluating the manner in which they continue to provide legal services, with many wondering if they should take action to leave the legal profession for good.
Exiting from a particular specialism, or from the legal market itself, can be incredibly daunting, time-consuming, and come with certain risks, which can affect a lawyer’s decision to make this move. However, teaming up with the right legal team can prove to be a seamless process and a move that you will not regret.
Here, we look at the potential reasons why many legal professionals and business owners could benefit from file acquisition.
1. A change of strategy
Very often, a legal practice may choose to transfer their work in a particular specialist area due to a strategic decision. It could be that one area of the law is proving to be more costly to operate than originally thought, and therefore decision-makers at that particular firm decide that the best option would be to cease handling cases under that specialism.
In the current economic climate, making this type of decision will prove invaluable for smaller legal practices in particular, which may find themselves feeling the effects of the coronavirus pandemic more than larger firms. However, regardless of the pandemic, many legal businesses are increasingly being forced to make difficult decisions in order to ensure their firms remain profitable at this time of enhanced change.
2. Reduce cost base
While assisting people and businesses with legal advice and support is the main priority for legal firms, it is also vital to remain in a strong position financially. If a particular area is proving difficult to enter into, the sensible decision would often be to pull back on these additional services and instead focus on their core strengths.
Many legal firms have been forced to cut salaries amid the pandemic, while others have sought to participate in the government’s temporary wage subsidy scheme to improve their finances as clients stall projects. The financial implications of COVID-19 are set to be felt for a long time after the severity of the situation has eased, and so many firms are making the decision to hone their services to prevent unnecessary costs.
3. Decrease or redeploy headcount
Another side effect of the coronavirus pandemic is the requirement for many firms to reduce headcount in order to keep costs down. Even the top firms in the country joined smaller firms in taking measures to mitigate the economic impact of the pandemic due to a reduction in demand. While the majority of these reductions were temporary, many companies have made the decision to let staff go in order to remain competitive at this uncertain time.
4. Lack of experience in a specific area
If a legal firm has taken on a member of staff who specialises in a specific area of the law, problems can then arise if that employee chooses to leave the company. Taking advantage of file acquisition services would mean that the decision-makers from that particular firm would be able to hand their files over with the minimum of fuss.
There comes a time in every legal professional’s career when retirement is on the horizon. Those sole practitioners who have built a strong reputation as trustworthy and knowledgeable lawyers will often find themselves having to make a difficult decision about what to do with their files when they cease practicing for good.
Finding an experienced firm to take on these files is a fantastic option for retiring legal professionals.
How we can help
Gibson & Associates has created a tool to help you start your decision-making process about utilizing file acquisition services, helping you to understand whether your legal cases are in a good position to be acquired by another solicitor.