Case Study: How R&R Solutions Assisted with a Volume RTA Phased Closure

When a volume RTA operation decided that the time had come to exit the market, the prospect of ceasing to take new work but maintaining resources to complete 12,000 cases was a challenging one.

Engaging with R&R Solutions, the firm undertook a full review of their open matters to establish the true position on meritorious claims and took the opportunity to cleanse the book of ‘dead wood’.

Next came a review of resources, their capacity and existing workloads.

Having been a large, local employer for many years their staff turnover had been low with a number of long serving members on the team and there was a strong desire to be fair and supportive of everyone.  Early discussions with the team were started to ensure that everyone was aware of the plans to phase an exit out of the market over an 18-month period.

Inevitably this would involve ongoing reviews of resources and the need to rationalise, but a generous incentive and redundancy structure was put in place to ensure that appropriately qualified people were retained to complete the cases, and those who could not be retained received a redundancy payment.

R&R Solution’s ongoing review ensured that there was no slow down in case settlements, nor the settlement level, and that costs were appropriately reduced to match the reduction in case load.

As a separate exercise, cases where clients had ceased to cooperate, had provided fraudulent information or had simple decided not to pursue their valid claims were revisited and a project undertaken to reclaim costs and paid disbursements as a result of the clients’ breach of their CFA.

Ultimately, at the point where the original case load of 12,000 files had reduced to under 2,000 it became no longer economically viable to maintain an office infrastructure with staff.  The cases were passed, via an Asset Purchase Agreement, to panel firms at R&R Solutions, who completed the cases and realised the value of the work already done by the original firm.

By phasing the exit this firm was able to maximise the recovery of their valuable WIP asset whilst managing their costs base in line with a diminishing case load and, at the tail end, close-down, knowing that they would still realise the value of their WIP from the residual cases to be completed via R&R Solutions.

This solution works equally well for firms who are looking to restructure and exit only specific work types, close an office or offices, or work towards an orderly firm closure.

If you’d like to learn more about R&R Solutions and how they may be able to assist your organisation, contact us in confidence – david.johnstone@r-rsolutions.co.uk

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 Recovery First 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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