Irwin Mitchell to restructure under Tesco Law

LAW firm Irwin Mitchell has announced its intention to take advantage of the provisions of the Legal Services Act to restructure the partnership as an Alternative Business Structure (ABS).

The ABS model, one of the key elements of the forthcoming Legal Services Act, has been dubbed the ‘Tesco Law’. It allows outside investment in law firms and will also revolutionise the delivery of legal services.

Irwin Mitchell, which has offices in Leeds, Sheffield, Birmingham and Manchester, has been a strong supporter of the reforms and has said the restructuring will be key in furthering its growth plans.

The firm has appointed Espirito Santo Investment Bank as its financial adviser to review its options for raising external capital.  It said that at present, all alternatives – which could eventually include floating on the London Stock Exchange – were under consideration although the preferred method and timetable for seeking external funding had yet to be finalised.  

In preparation for becoming an ABS, Irwin Mitchell said the restructure would see it adopt a two-tier model with the creation of a new corporate vehicle. Irwin Mitchell LLP will remain the main operating business, with the new vehicle becoming the partnership’s controlling member.
 
John Pickering, national managing partner of Irwin Mitchell said: “The Legal Services Act will create exciting growth opportunities for strong, well-financed legal services businesses to accelerate their growth plans.  Irwin Mitchell intends to be at the forefront of these changes and we have therefore taken the decision to seek external investment to further our ambitious plans for the business.
 
“Conversion to an ABS will broaden our access to capital and enhance our funding flexibility as we execute our strategic growth plan, while ensuring that we can continue to provide the very highest standards of service to our clients.”