Consula now provides access to an innovative and market leading personal injury market exit process which will interest many law firms who provide personal injury services.
consula.co.uk, which provides legal, business and other services to law firms, start-ups and business, is focused on current market opportunities emerging as a result of the Jackson reforms implementation under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (“LASPO”).
LASPO has been very controversial in the legal world and its implementation of the Jackson reforms is creating a wave of changes, out of which new market opportunities are being established. The move by Consula is intended to target the majority of Personal Injury (PI) Firms in England and Wales. The process is specifically designed for PI firms who are either likely to experience financial difficulty or are already looking to exit the PI market, but are keen to retain the maximum WiP possible on their book of cases, rather than sell them off “on the cheap”.
This new and market-leading exit solution assists firms’ exit from the market in an orderly, structured way, avoiding potential fire-sales of their existing book of work. The process also delivers a significantly improved financial return than is otherwise available from other options in the marketplace.
The increasing turmoil in the PI Market as a result of Jackson, where more than 3,000 PI providers directly affected by the changes, has resulted in a number of different “exit-strategies” by various providers. The majority of those existing schemes, however, fail to provide anything reaching a 40% return on WiP, which will concern those looking to exit the market.
Consula’s process delivers returns on WiP of up to 90%.
Consula’s process can also help those in financial difficulty avoid insolvency, providing greater security to the profession during these increasingly dynamic times.
The process involves the exiting firm transferring their entire book of work to a panel. The process, which is administered professionally by a dedicated team and includes transparent reporting, allows withdrawal sensibly from the PI market. The process should be of interest to law firms facing pending insolvency, cash flow difficulties and those facing re-structures. It is also likely to be of interest to firms wishing to exit the market voluntarily, perhaps due to retirement or those who simply wish withdraw from this over-competitive market.
More details about the process are available on Consula’s website here.