Law firm eyes international expansion after clincing £65m finance facility
Law firm DAC Beachcroft is set to expand into new international markets after securing a £65m finance facility from longstanding banking partners, HSBC UK and Lloyds Bank.
The top 25 UK law firm, which has 12 offices in the UK including Birmingham, Leeds and Manchester and more than 30 globally, has increased its finance facility to ensure that its investment and trading plans will not be disrupted during the unprecedented circumstances caused, in part, by the COVID-19 pandemic.
The facility will provide support for the firm’s continued expansion, enabling it to pursue an ambitious 2020-2021 growth strategy both domestically and overseas, with Europe and Asia particular areas of focus over the next six to nine months.
It will also enable DAC Beachcroft to make key investments in its infrastructure, including driving forward its technology strategy including the implementation of a state-of-the-art practice management system, set to launch in Spring 2021.
Managing partner, David Pollitt, said: “DAC Beachcroft is a financially robust business with an international turnover of £258m and this latest finance facility from HSBC UK and Lloyds Bank has given us additional headroom to progress some of our strategic business objectives.
“Our balance sheet remains strong and this improved debt capacity – even if unused – will give our clients and colleagues further confidence in our business.
“Demand for our services has been steadily growing and being able to continue to meet the ever-evolving needs of our clients, despite the challenges posed by COVID-19 in recent months, is essential to the success of our business.”
Chloe Clift, head of professional services, HSBC UK, said: “HSBC UK has enjoyed a long-standing relationship with DAC Beachcroft and has seen the firm go from strength to strength, with successive years of across-the-board financial improvement and successful expansion both abroad and in the UK.
“We were delighted to support this innovative and profitable business, as it pursues its ambitious growth plans.”
Stuart Leslie, Lloyds Bank relationship director, said: “Like other prudent professional services firms, the management team at DAC Beachcroft has recognised that now is the right time to further strengthen its balance sheet in the face of the current and future challenges. The firm is among those flying the flag for UK professional services in overseas markets and this funding package will also ensure it has the support to capitalise on new opportunities as and when they arise.”
DAC Beachcroft, which can trace its roots through a series of mergers back to 1762, is a broad-based commercial law firm with a strong heritage in insurance, health and real estate.
Independent UK law firm Burges Salmon acted on behalf of HSBC UK and Lloyds Bank.