Law Practice

Service(s): Interim Management
Sector: Professional services

A mid-sized, previously successful law practice had a sizeable loan with the bank which was manageable when the practise was performing well. What was of concern to the bank was the £800k overdraft and the demand from the senior partner for an increase in this level of funding. The practice did not have a good track record in maintaining management information and both budgets and forecasts were regularly missed.

FRP Transition was asked to introduce a Finance Director (FD) to the partners; one with a sound knowledge of professional service business to help them work through the issues. The existing business plan was unviable and a new one was worked through, utilising verified data. The accurate plan was then implemented with the partners support. The step changes improved the cost base and enhanced the financial and operational controls which, in turn, improved profitability by some 400%. Significant tax advantages were secured through the FD’s intervention with HM Revenue & Custom, which had a positive cash impact on the practise of £100k.

The practise is now run on an accepted financial format. It is once again making money and managing its own affairs with, at the request of the practice, a periodic overview by the interim FD. The bank has reduced its lending to a far more acceptable level.