Legal News
“Virtual” law firm to float on stock market
07/10/2011
A “virtual” laws firm has become the first solicitors’ practice in the UK to announce its intention to float on a stock market to encourage investment.
Everyman Legal, which was created in 2007, will become an alternative business structure (ABS) and then sell its shares on the Sharemark index – a stock market for smaller companies – in a bid to raise £500,000.
The virtual firm consists of 13 “partner” solicitors who work from home, building their own practice.
Specialising in providing legal services to entrepreneurs, Everyman solicitors sell online templates and information and are provided with a web-based marketing platform, back-office systems and administrative support through the company’s Oxfordshire-based hub.
With an annualised income of £1 million last year, the target valuation of the business when it floats in the last quarter of 2012 will be £3m, the plan is to pay dividends at 5% and double the value of the firm every year.
Everyman Legal founder James Hunt, who also created the UK’s first incorporated legal practice, Hunt & Co Solicitors Incorporated, in 1992, said: “I recognise that this may seem to some to be a very bold move, but we share the entrepreneurial spirit of our clients and plan to be at the vanguard of the revolution taking place in the legal sector.
“We’re under no illusions that if you don’t put in place the right long-term plans, you will not create the right structure and environment for rapid, sustainable growth.”
He added: “Starting out on a smaller market such as Sharemark is a great way to build profile and get to grips with the practical challenges of being a traded company.
“It will also enable us to start the process of forming relationships with potential investors and analysts, while the low cost and regulatory burden will not weigh us down. This move is also evidence that smaller law firms can take advantage of the Legal Services Act.”
Everyman has introduced a radical pricing policy, dropping hourly rate billing and instead agreeing on a fixed fee against an agreed specification of work.
“Our business model will appeal to the entrepreneurial solicitor. By joining us they’ll find themselves amongst kindred spirits,” said Mr Hunt.
“We provide solicitors with the opportunity to practise law on their own terms and without the politics and bureaucracy often associated with larger firms.”
