As we approach the end of the financial year, many solicitors are likely to be reviewing their cash flow and considering ways to improve their financial health. Positive cash flow is essential for your firm to be successful in such a competitive market.
For those facing cash flow problems, there are a some things firms could consider for improving cash flow and achieving long term success.
5 Tips for improving law firm cash flow
- Get your finances in order – Understanding your finances is essential for cash flow management. Use cash flow forecasting and figure out which types of cases are bringing in the most money and which are not. Review your outgoings and make decisions on which expenses can be cut to improve cash flow and reduce costs for your firm. Get advice as early as possible to ensure you make the best decisions for your firm.
- Remote working – The pandemic forced us to adapt in our ways of working and has shown us that working remotely as a law firm is possible, and in some circumstances, a more viable option. Allowing your staff to work from home, either part time or full time could allow you to reduce the size of your offices and reduce your outgoings on real estate, heating, and electricity, cutting costs and improving flow of cash.
- Exit an unprofitable market – The legal services industry has faced many challenges over the past decade. It is unsurprising that some law firms have made the strategic decision to exit specific practice areas to allow them to focus on more profitable markets. With the help of R&R Solutions, you can ensure a smooth, compliant exit from any market, placing files with the most suitable firms from our panel of solicitors, allowing you to preserve the value of your locked-up WIP
- Free up value locked in your WIP – If you decide to exit an unprofitable or less profitable market, you could choose to transfer your existing files to an alternative firm of solicitors. Using the R&R Solutions method will ensure you recover the maximum value locked in your work in progress, thus helping to improve cash flow when you need it most.
- Consider a merger or acquisition – It has become clear in recent years that larger firms have more power to compete in such a competitive legal market. Due to this, the number of mergers and acquisitions in recent years has increased substantially. In some circumstances, the merging or acquiring firm may not wish to continue in a specific legal market. If this is the case, R&R Solutions can assist firms in leaving an unsuitable market and placing files with a suitable firm on our panel.
How can R&R Solutions assist?
R&R Solutions understand the importance of having positive law firm cash flow. We can work alongside your firm to help you leave a less profitable market, improve your cash flow by releasing value from your work in progress, and assist if you choose to take the merger or acquisition route for your firm.
In the worst-case scenario, you may be required to close your firm due to cash flow issues. R&R Solutions can assist you in this situation to ensure a compliant closure of your firm.
Our process involves discreetly selling a firm’s cases to multiple purchasers on our panel of solicitors. This mitigates the risks to the buying firms and results in a higher value for the work in progress being recovered and provides you with a share of any success fee, whilst ensuring SRA compliance.
Our team manage the whole process from transfer of files to appropriately qualified panel firms suited to deal with your unique client matters through, to collection and management of costs at conclusion. Our fees are only payable as a proportion of what you recover, so there is no risk to you.
If you would like to find out more about R&R Solution’s process, feel free to get in touch with our Managing Directors on a confidential basis: David Johnstone at email@example.com, or 07887 796 989, or Sally Dunscombe at firstname.lastname@example.org or 07774 205 870
Retirement Project - Grant Saw Solicitors LLP
“With our claimant personal injury partner retiring in we decided the time was right to step back from PI work. We reviewed the market options, were disappointed at the discounts being applied by potential buyers of the WIP and were referred to R&R’s offering the full realisation of WIP over time. It has effectively delivered what it “said on the tin” - over the project period we have seen a steady flow of receipts being accounted for to us, allowing us to recover the full value we had built up in the files."
- Mike Clary, Partner
Restructuring Project - Copley Clark
“Having taken a strategic decision to be completely step out of the claimant personal injury sector we were R&R’s first client to step back on a phased basis. R&R customised their offering specifically for us and I am happy to say it has worked a treat. We could focus our own resource on matters where we had a possibility of concluding within our timetable and utilised R&R’s panel firms to continue to work on other matters. Not only have their services allowed us to retain the value we had built in the files, the nature of the services ensured we were able to offer our clients the option of moving to firms with the skill sets required to best service their specific needs. For firms considering restructuring we would have no hesitation recommending R&R Solutions."
- Malcolm Lawrence, Partner
Restructuring Project - Farley Dwek Solicitors
" We had an extremely positive experience working with R&R Solutions after making the strategic decision to move away from an area of law and retune our business model. The process was very straightforward, and we were really pleased with the overall outcome. We would highly recommend the Recovery First model as a practical solution to any law firm wishing to exit a specific sector.”
Jonathan Dwek, Director
Ticking all the boxes for a quick, clean, confident exit from legal markets due to restructuring or retirement.
Contact us now in the strictest confidence
07774 205 870
07887 796 989
106 Kennedy Building
PO Box 632