The wave of consolidation in the legal market shows no sign of stopping, but within the PI and clinical negligence sectors, the scale and pace seem to have accelerated in the past five years, with more mergers and acquisitions than in other specialist areas.
Consider the entry by Sun European Partners, a mid-tier private equity house, into the legal sector three years ago. It acquired leading claimant serious personal injury and clinical negligence firm Fletchers for over £40 million, clearly demonstrating not only intent but real firepower.
It has since set its sights on becoming the dominant player in the claimant market, with further acquisitions.
Fletchers' strategy revolves around transformational and not transactional M&A based on pure scale and revenue, which sets them apart.
A transformational approach to M&A involves a comprehensive strategy that goes beyond traditional financial and operational considerations. It aims to fundamentally change the merged entities to create a more competitive, innovative, and efficient organization.
This is a real catalyst for the law firm to increase revenue and profitability.
With additional funding, Fletchers are definitely on the march.