Legal Services BulletinSeptember-October 2013

Jason AdderleyT: 0121 602 1445M: 07824 449 577E: j.adderley@erauk.net: @ERA_Legal

COMMENT FEATURE: see overleaf

MATTHEW ARNOLD & BALDWIN

Cost Reduction Strategy

PEPs Up South East Firm

The Editor

Jason Adderley is a consultant Partner with ERAspecialising in managing programmes of work forlegal and professional services firms.

He has 18 years experience of working withsolicitors and other professional consultants as aclient and as a service provider.

“....ERA has managed to consistentlyoutperform my expectations and theirspecialists know their business...”

UNDER PRESSURECompany Watch finds that a third of law firms areunder financial pressure and may requirerefinancing or an injection of capital.

REVISTING REGULATIONThe SRA has called for “truly independent”regulation of the profession, but stopped short ofcalling for a single regulator.

MID MARKET FIRMS TOP LOCK UP LEAGUEMHA found that firms with 11-25 equity partnershad average lock up of 148 days compared withthe national average of 127 days.

PRACTICE TIPS

networkpartner withMy local town lost its last large full servicefirm with the demise of Challinors, thoughhappily the resurgent Thursfields was ridinginto town to fill the void as we went to print.

Birmingham superpower Shakespearescontinued to hoover up practices, withacquisitions in Leicester and Coventry.Australian-owned Slater & Gordon drewFentons and others into the fold.

Consolidation is a trend with momentum andmore and more we’re finding ourselves drawninto firms to drive the efficiencies they seekquickly.

At ERA we’ve added another legal IT specialistto the team to expand the breadth of serviceswe’re able to offer. We’ve highlighted theongoing cost of software overleaf and willreturn to the subject of software in futureissues.

Our client David Abrahams, Finance Directorat Matthew Arnold & Baldwin (MAB) has beenkind enough to let us publish a case studywhich is summarised briefly overleaf. MAB hashad a fantastic year with a PEP figure thatpropels the firm into the Top 20.

Sustained cost reduction has been anintegral element of the growth strategy, andthe full case study is available on request.

Those in the legalprofession hoping for aquiet Summer have beendisappointed.

July and August havebeen punctuated byfurther stories ofadministration, mergerand acquisition.

#5AN EXPERT FOR EVERYTHING

Why ERA?

We understand that manyfirms would like to carry outthe type of work we dothemselves, in fact it’s one ofthe most common barriers weencounter.

“But how many firms canhonestly say they have aprocurement specialist inevery field?”

Our Legal Services Team hasexperts who procure productsand services every day – so wecan deliver more quickly.

Our Team also has £millionsworth of spend undermanagement, so we canleverage more savings.

Jason AdderleyT: 0121 602 1445M: 07824 449 577E: j.adderley@erauk.net: @ERA_Legal

STUDYCASE

Matthew Arnold & Baldwin LLP

“I was highly sceptical of Jason’sclaims during our initial meetings, butI am happy to say that his team havemanaged to consistently outperformmy expectations, and their specialistsknow their business.”

David Abrahams, Finance Director, Matthew Arnold & Baldwin LLP

Matthew Arnold & Baldwin (MAB) is 30-Partnerfirm operating from London and Watford. With aturnover of £20 million, MAB is amongst thelargest 200 firms in the UK by fee income. Profitper Equity Partner of £616,000 for 2012/13places the firm amongst the Top 20.

LSN Law Firm Forums October 2013

LSN Law Firm Forums provide a unique opportunity for you togather under one roof with others working in law firmmanagement, operational and support roles.

ERA will be attending Law Firm Forums at Birmingham onOctober 2 and Bristol on October 15 and we’d love to see youthere.

For more information visit: www.legalsupportnetwork.co.uk

ERA was first engaged by MAB as the firm wasanticipating a period of significant growth. The firmhad neither the time nor the resources to quicklyinterrogate elements of the non-salary overheadthemselves. However, Finance Director DavidAbrahams recognised that any savings identifiedcould be put back to work winning new business orhelping towards the costs of hiring additionalrevenue generating staff.

To date ERA has implemented projects forDocument Storage, Digital Print, Postage, OfficeSupplies and Leased Lines with savings well into sixfigures. Reviews are underway for SecureShredding, Mobile and Fixed Telecommunications.

The full MAB Case Study is available upon request.

Most Law Firms have experience ofsoftware and services procurement.But how can you be confident that youhave secured the best available terms,not only for the initial procurement, butover the course of the software usage?

Since most software vendors charge atleast 20% of the software price forannual support, the firm can expect topay the equivalent of the undiscountedsoftware price every 5 years, in additionto the initial capital expenditure.

As a version of software ages, it becomesmore stable and users become moreadept in its usage, resulting in less needfor support. Yet, the price of thatsupport rarely changes.

That is, until you ask one of our Legal ITexperts to review those costs for you.

Hard cash for Software