In a strategic move to capitalise on the burgeoning opportunities within the legal sector, a Midlands-based law firm recently acquired by private equity firm Horizon Capital has set its sights on an ambitious expansion. The firm, FBC Manby Bowdler, intends to more than double its size within a year, as revealed by its chief executive.
Neil Lloyd, the chief executive of FBC Manby Bowdler, a firm now part of the newly formed Adeptio Law Group, plans to establish four regional practices over the next two years. This move aligns with Horizon Capital’s strategy of building a leading national legal services group by acquiring regional law firms. Horizon has committed an initial £30 million to this venture, with less than half allocated to acquiring FBC.
Lloyd, who also leads Adeptio, explained that FBC’s growth strategy involves acquisitions and new offices, including a forthcoming office in Knowle, near Solihull. FBC, known for servicing SMEs and private clients, reported an impressive operating profit of £5.7 million on a turnover of £16.5 million for the year ending March 2024. Seeking faster growth, Lloyd acknowledged the necessity of securing funding beyond traditional bank loans.
The law firm aims to reach a turnover of approximately £40 million within a year, with current offers potentially raising it to £36 million. As an alternative business structure (ABS), FBC can explore complementary services such as HR, tax, or financial advice. However, Lloyd is not interested in small-scale acquisitions, a strategy adopted by other private equity-backed groups. Instead, the focus is on acquiring firms with turnovers up to £10 million.
Lloyd highlighted the disparity between smaller firms and their larger counterparts regarding technology, processes, and risk controls. Recent fines imposed by the Solicitors Regulation Authority for anti-money laundering violations underscore these challenges. By acquiring larger firms, FBC aims to enhance client experience and mitigate risks.
Horizon Capital’s vision includes maintaining the unique identities and cultures of regional firms within Adeptio, potentially increasing their investment if necessary. Lloyd emphasised the urgency of acting swiftly, drawing parallels with the accountancy sector, which has seen a substantial influx of private equity investments.
With a background in banking, Lloyd joined FBC in 2015 and rose to managing director by 2020, becoming an equity partner under the firm’s ABS conversion. He commended the adaptability of FBC’s partners, who have long embraced change. Lloyd’s confidence in the legal sector’s resilience stems from its role in areas such as catastrophic injury, clinical negligence, and family law, which remain robust regardless of economic fluctuations.
The journey ahead for FBC Manby Bowdler under Horizon Capital’s ownership is one of ambitious growth and transformation. By strategically positioning itself in the market and leveraging private equity investment, the firm is set to expand significantly, reflecting the dynamic evolution within the legal industry.
