An interview with Paddy Scully: Overcoming financial challenges

fixed recoverable costs extension

The most recent recruits to the R&R Solutions panel are a triumvirate of lawyers who have all experienced their own challenges, which they have worked through and come out the other side stronger and with a clear vision for the future.

In our first interview, we speak to Paddy Scully, of P R Scully, who provide the umbrella under which P R Scully, Capa Law and Susan Hargreaves come together as what we affectionately call ‘Coven Law’.

Entering and exiting a Partnership Voluntary Agreement (PVA)

Paddy explains that in 2014, P R Scully were put under extreme pressure by their bank, which ultimately led to the partnership entering into a Partnership Voluntary Arrangement (‘PVA’) with its creditors.

“Whilst we worked with an excellent team from Leonard Curtis and our supervisors were very supportive and held our hands every step of the way, the process of a PVA is intrusive to the firm and the fee earners, inefficient and disjointed; part of this involved selling a tranche of our multi-track book at a significant discount.

After six months of little sleep and feeling like we had stepped out of the spin cycle of a washing machine, we focussed on building morale and doing what we did best – settling claims for clients with the best possible outcome.

We are very proud that we proved our doubters wrong, worked our way through and successfully exited the PVA creating a strong viable business for the future.”

 

Advice for law firms struggling financially

“We have learnt many lessons along the way, found out who our friends are and now have strong, stable profitability, produced by our loyal, cohesive team. We would not wish that time on anyone, but if you do find yourself in a similar position, we share these thoughts with you:

– Engage with external advisors early and choose someone you can relate to

– Commit to a plan and stick rigidly to it – don’t let others distract you from your goal

– Don’t let your standards and integrity slip in your dealing with everyone, especially staff and clients

But most of all, keep faith in yourselves and keep smiling!”

How Recovery First can help law firms in similar situations

P R Scully’s experience, and those of the other ‘witches in the Coven’ provide them with very personal insights into how to reassure and retain clients through periods of uncertainty and produce some of the best retention rates across the R&R Solutions panel.

‘Having direct experience of how an R&R Solutions project works from the view of a panel firm, if we had known back in 2014 what we know now, then working with them alongside our PVA supervisor would have been a far simpler, less stressful process and provided us with a fairer split of the returns for our hard-earned WIP’ Paddy reflects, ‘particularly important when personal guarantees are at stake’.

Knowing the worry that changes in the structure of a law firm can cause to its clients, the R&R Solutions  model puts the client as well as the law firm at the heart of the process. R&R Solutions  promote a respectful approach with clients to the changes in the donor firm. Paddy reflected, “it was very important to me that my professional reputation was intact at the end of the process, and I have now experienced first-hand that the R&R Solutions model achieves this for the firms they work with.”

Questions you will want answers to:

What happens with the SRA?

When should we start speaking to them?

When are they likely to intervene?

Will I be able to continue to practice? What impact might it have on my practicing certificate?

What happens to the staff?

Will they get made redundant and receive redundancy pay?

What is the RPO?

How do I get the best value for my WIP?

How do I find the right advisors?

What are my alternatives, and what do they mean for me personally and the firm?

 

R&R Solutions can provide you with answers to all of the above questions, and we guarantee 100% confidentiality for all clients. If you would like to speak to someone about your options, feel free to get in touch today via email at david.johnstone@r-rsolutions.co.uk, or 07887796989, or contact Sally Dunscombe at sally.dunscombe@r-rsolutions.co.uk 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

Sally Dunscombe:

07774 205 870

sally.dunscombe@r-rsolutions.co.uk

David Johnstone:

07887 796 989

david.johnstone@r-rsolutions.co.uk

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