As a national legal consultancy, SSG Legal talks to a wide range of law firms every day and we’re hearing two common threads as global economies stall.
Firstly, that law firms’ financial issues have erupted very quickly.
Secondly, that crucial law firm processes are not robust enough for the changed times in which we now operate.
Cash flow and profitability are under the microscope as the collapse of key sectors, including the property markets, results in lower fee incomes. In addition, key overheads are still out of control:
- Salaries have been rising exponentially, in addition to the training, maintaining and retaining costs associated with talent retention.
- Long leases, at high rents, have been taken on premises that cannot be sub-let.
- High tax bills will need to be met in 2009, based on profits made in 2007.
At the same time, the insurance market is hardening, threatening to bring about much higher insurance premiums next year. Independent insurance brokers Professional Indemnity Agents Ltd told SSG Legal as recently as 29 October 2008 that “Law firms are not the flavour of the day with underwriters – it’s not how much a premium will be, but whether they’ll get covered at all.”
What’s more, the banks are increasingly reluctant to extend overdraft facilities. Indeed many firms are finding that they are under pressure to reduce their bank lending.
On top of all these issues is the spectre of the Legal Services Act with its potential of introducing new entrants, backed by wealthy investors, looking for high market share through predatory pricing.
What’s to be done?
SSG Legal Consultany has solutions for these problems which concentrate on improving law firms’ cash flow and profitability.
Our national networks of consultants have spent their working lives in the legal sector, from practice directors to managing partners. As a result, our understanding of law firms and their problems is unique and invaluable. We have extensive experience of advising on a variety of aspects affecting profitability.
Using our expertise, we have built a unique product that addresses the urgent needs of the legal market - a Crunch Audit which shows where and how to improve cash flow and profitability, in return for a fixed fee.
Our audit examines:
- Operating Structure
- Fee structures and control
- Utilisation and Recovery
- Lock-Up
- Capital Structure
- Cost of Funds
- Costs
- Cash Flow
- Investment Projects
- P/L and Balance Sheet review
- Management Intelligence
Our Approach
SSG Legal’s aim is to bring about quick results which demonstrate the effectiveness of our advice. We will help you build on the quick wins and strengthen your financial base.
However, we understand that every firm has its own distinctive issues, so our approach caters for the individual needs of each firm.
Change can be difficult to handle so our consultants work sympathetically with all the relevant people in your firm. We will ratify each of our findings and recommendations with you and your team so that the next steps can be agreed. The final report of our activities, findings and recommendations will be presented to you in a formal session.
Pricing
Having completed a succinct questionnaire, your dedicated consultant will spend a half-day, in your offices. They will then provide you with a proposal that includes a fixed price. We'll start working on your audit within 21 days of you executing our agreement, with our final report presenting within 30 days of commencing work.
SSG Legal Consultancy is so confident that our business case will be beneficial to you and your firm that if for any reason you decide to not proceed with the audit after being presented with the proposal, you will not be liable for any charges.
The Future
We not only help in establishing a long term competitive model for your firm but can also work with you on your future strategy, your branding, positioning and marketing.
The legal profession is set to encounter a period of profound change which few firms can afford to ignore. The impact of the Legal Services Act will soon start to be felt and outside investors are already starting to make their move. The number of law firms is set to halve and there will be huge consolidation in the sector.
SSG Legal can provide your firm with the tools and support to not only keep on track but to flourish during the credit crunch and beyond. For further information please contact our Senior Partner, Jeff Gillingham, in strictest confidence via email or on 0845 643 9343. You can also find out more about Jeff by viewing his Profile.
