The acquisition of a law firm by private equity marks a significant shift in the legal sector.
- Adeptio Law Group plans to expand significantly, under Horizon Capital’s umbrella.
- Horizon Capital commits £30 million to establish a national legal services group.
- Chief Executive Neil Lloyd outlines ambitious growth strategies and targets.
- FBC Manby Bowdler aims to achieve a £40 million turnover within a year.
The acquisition of FBC Manby Bowdler by the private equity firm Horizon Capital through its new vehicle, Adeptio Law Group, signifies a notable transformation within the legal industry. This move is set against a backdrop of strategic expansion, with the chief aim to construct a leading national legal services group by assimilating regional firms. The significance of this acquisition is underscored by Horizon’s commitment of £30 million, earmarked for this ambitious venture.
Neil Lloyd, the chief executive of both FBC Manby Bowdler and Adeptio, specifies the scale of the ambition: to double the law firm’s size within a year. Lloyd’s strategy does not involve minor acquisitions; instead, he is targeting law firms with substantial turnovers, avoiding smaller bolt-ons. This approach seeks to bridge existing gaps in technology and process efficiencies between smaller and larger firms, thereby addressing compliance and risk management effectively.
Adeptio, under Horizon’s majority ownership, also plans to establish four regional practices over the coming two years. Despite the ambitious targets, Mr Lloyd has received positive feedback from other firms within Horizon’s portfolio, indicating the potential benefits of shared expertise and resources.
Further illustrating the firm’s robust approach, FBC Manby Bowdler’s recent history of scalable infrastructure investment has poised it for accelerated growth. With eyes set on a £40 million turnover, potential acquisitions are already in the pipeline, which could promptly elevate revenues to £36 million.
The legal field’s evolving landscape mirrors trends seen previously in the accountancy sector, with private equity investments offering promising prospects for growth. The demand for legal services, particularly in areas such as catastrophic injury and clinical negligence, presents a recession-resistant opportunity.
The private equity-led initiative to enhance and expand FBC Manby Bowdler exemplifies a strategic advance in the legal industry.
