How to Transfer Your Legal Cases

Work-In-Progress (WIP) File Acquisition

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How to Transfer Your Legal Cases

The structure of a transfer of legal cases and work in progress can vary greatly depending on your needs.

Generally, when a law firm wants to exit a specific market, but is still handling other types of work, deferred consideration maximises the return on the deal. Upfront payments can also be considered; however, they tend to result in a lower valuation due to additional due diligence and risk assessment being required.

Gibson & Associates is able to acquire any legal cases and work in progress from a firm or sole practitioner wishing to exit the legal market or a specific sector. We are able to generate cash payments and complete transactions quickly and efficiently.

All negotiations are handled directly by our managing partner Daireann Gibson with the aim of completing each transaction quickly. We appreciate the sensitivity of the process and all enquiries are received in the strictest of confidence.

To have a no-obligation, confidential discussion with us about acquiring your work-in-progress files, contact Gibson & Associates by calling 01 872 3143, or fill in our online enquiry form to request a call back.

WHY TRANSFER MY LEGAL CASES?

CAN I TRANSFER MY LEGAL FILES?

How the process works

STEP 1

The first step would be to get in touch with Gibson & Associates so we can talk about your objectives and how we can help. We handle all enquiries with a level of sensitivity that is required for these transactions.

STEP 2

Once we accept your enquiry, a non-disclosure agreement is completed to ensure confidentiality is respected. We will also request some headline information on the files to be acquired, including case type, shelf life, funding in place, litigation status, and costs billed to date. This will allow us to create an anticipated end value on the cases, which would allow us to make a suitable offer.

STEP 3

We will leave you to take your own specialist tax advice, but will ensure that deals are structured in such a way as to minimise personal and/or company tax liability.

STEP 4

We will then make an indicative offer, confirming timescales and due diligence. Deals will be offered in one of two ways:

A one-off payment for your legal cases
An earn out, which is calculated as a percentage of recovered profit costs, with an upfront deposit based on current work in progress figures and/or incurred disbursements

STEP 5

Depending on the number and complexity of the files, we will assign an appropriately experienced team to undertake due diligence discreetly. This will usually involve reviewing around 10% of the work progressed by volume.

STEP 6

Once due diligence has been completed to a satisfactory level, we will enter into a legal agreement and arrange an orderly transfer of the cases, ensuring clients are informed at every stage of the process.

STEP 7

Once completed and agreed, we will begin the onboarding process. This includes communication from you to your clients announcing the decisions. We will then contact those clients explaining who we are, our approach and how we will work with them going forward. At this stage, we will seek their agreement to proceed and complete any necessary client documentation.

STEP 8

Payment will then be made in accordance with the agreement. In instances of deferred consideration, you will be regularly informed of billing progress and fund transfers.

How do I get my cases ready for transfer?

An ideal work-in-progress caseload will include a clear list of matters tidily organised in chronological order and provide a true reflection of the recorded management information.

Prior to due diligence, it is advisable to remove any cases with little or no prospects of success, along with any dormant files. If you can offer triangulation, providing historic settlement patterns and win/loss ratios, this may add to the potential value of your cases.

The more prepared for the transfer you are, including an understanding of valuation and transactional processes, the better the outcome is likely to be.

Get confidential advice today

If you are looking to exit the legal market due to retirement, to improve your cash flow or focus on the provision of other legal services, we are confident that we can provide you with a solution that allows an organised and effective exit.

Contact us today for a no-obligation and confidential discussion by calling 01 872 3143, or fill in our online enquiry form and we will get back to you.

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