A small two partner practice undertaking general claimant PI and Employment Litigation work. The practice wanted to develop its employment work particularly for employers. The firm had secured funding but decided that as an alternative it was worth selling its personal injury work in progress. It was able to realise 60% of its WIP amounting to over £500,000 with a one off sale, and payment of all its paid disbursements totalling £65,000. This was completed in 4 weeks from the date of instruction.

This was a large 100 staff PI practice that made a strategic decision to close the firm. Over a period of 2 months the caseload was viewed by a number of buyers and an offer was made that represented approximately 75% of the firm’s WIP valuation. Completion took place within 3 months and a number of staff were also transferred over to the buyer practice in accordance with the TUPE regulations. The availability of a 10% entrepreneur’s relief was sought by the owners on the sale making it a very tax efficient strategy. 

This practice used the sale of pre-Jackson work to fund the restructuring of the firm and to invest in new IT systems in order to carry out volume RTA work. The sale was used as an alternative to bank finance. Over a million pounds was raised with a number of separate deals for discrete parts of their PI work. This was a complex deal but concluded within 8 weeks.