Plexus set to become one of first major law firms to convert to ABS
Plexus Law's parent company, Parabis Group, is set to become one of the first alternative business structures (ABSs) after confirming plans for an early conversion. Parabis, which comprises the Plexus and Cogent Law insurance litigation firms as well as a number of separate non-legal arms, has been working with the Solicitors Regulation Authority (SRA) as part of a trial of the new ABS licensing process, ahead of this October's implementation of the Legal Services Act (LSA).
April 14, 2011 at 01:39 AM
2 minute read
Plexus Law's parent company, Parabis Group, is set to become one of the first alternative business structures (ABSs) after confirming plans for an early conversion.
Parabis, which comprises the Plexus and Cogent Law insurance litigation firms as well as a number of separate non-legal arms, has been working with the Solicitors Regulation Authority (SRA) as part of a trial of the new ABS licensing process, ahead of this October's implementation of the Legal Services Act (LSA).
Firms can apply for ABS status from August for an October conversion, with Parabis' plans set to make it one of the first large firms to convert.
The group's combined legal operations, known as Parabis Law, house around 400 lawyers, including 60 partners as well as 600 paralegals, and generate annual fee income of around £100m – which would rank the combined venture among the UK top 30 by total revenues.
Parabis said that the key motivation for a conversion would not be to take external capital, but rather to allow it to form a single structure that would permit non-lawyer senior executives to become LLP partners.
Plexus senior partner and Parabis CEO Tim Oliver (pictured) said: "It has always been our intention to become an ABS and we are looking at converting, although it is difficult to say if we will definitely be in the first round. It is logical for us as we also offer other services aside from law. We could be more flexible and have one brand, one feel, one look."
Plexus has previously explored raising external capital and held talks with private equity houses.
The LSA reforms will enable law firms to take on non-lawyer partners and external investment from October.
Other law firms considering an ABS conversion include Irwin Mitchell, while the Co-operative has confirmed that it will also apply to become an ABS as a result of the LSA reforms allowing corporates to provide legal services.
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