Knights Group: Pioneering a New Model for Legal Practice

Tom Borman, LawFuel contributor

IThe law is steeped in tradition, but Knights Group has emerged as a firm prepared to set the traditional law firm model on its head – with results that continue to impress through tactics that others may wish to consider, despite Knights’ more recent, ho-hum past two years.

Under the leadership of CEO David Beech (above), Knights has not only embraced change but has actively driven it, offering valuable lessons for legal professionals and firms looking to innovate in a rapidly evolving market.

Breaking from Tradition

Knights Group made history in 2012 by becoming the first commercial law firm to incorporate as a company when regulations changed. The firm boasted of being one of the fastest-growing law firm in the UK.

That was until layoffs and a downturn occurred earlier this year and following a tough year in 2022. Since then the firm has shown a strong recovery with increases in both profits and dividends.

An examination of the Knights law firm model, which has significantly departed form the traditional partnership model that most of the law profession are wedded to, shows that there is an efficient and streamlined operation that appears to work well.

Instead of lawyers wearing multiple hats as owners, managers, and practitioners, Knights employs a model where legal professionals focus solely on their core competency – practicing law.

Growth and Expansion

The numbers speak volumes about the success of this approach. From a modest team of 70 lawyers when Beech took the helm, Knights now has nearly 1,100 legal professionals achieved through a combination of organic expansion and strategic acquisitions.

While many major law firms gravitate towards London and other large metropolitan areas, Knights has carved out a unique niche by focusing on regional towns and cities.

Headquartered in Chester, the firm has established a strong presence in areas from Carlisle in the North to Portsmouth in the South, often becoming the major legal player in these localities.

Diverse Practice Areas

The firm has also chosen to diversify significantly, handling both corporate work, property, tax and employment – which account for about two-thirds of the firm’s revenues – and the balance coming from a thriving residential conveyancing business that has seen a 30 percent surge in activity according to reports.

In the 12 months to 30 April 2024, profit before tax rose by 17.3 percent to £25.3m on revenue up 6 percent to £150m.

Looking ahead, Beech has set an ambitious target of doubling sales to £300 million within the next five years, which he aims to achieve this through a combination of organic growth (targeting around 10% per annum) and carefully selected acquisitions.

Lessons for the Legal Sector

Knights Group’s journey offers several key takeaways for legal professionals and firms that may want to look at some of the tactics they have used, including:

1. Embracing innovation: Always a key ingredient to a successful law firm, which need to be open to new business models and ways of working.
2. A focus on core competencies: Allowing lawyers to concentrate on legal work by separating business management and running the firm as a business.
3. Considering regional opportunities: There’s significant potential outside major city centers which many firms tend to overlook.
4. Diversifying practice areas: A broad range of services can provide resilience in changing market conditions.
5. Balance organic growth and acquisitions: Both strategies can contribute to sustainable expansion with strategic mergers or acquisitions building growth and momentum.

Whether you’re a solo practitioner, a partner in a traditional firm, or considering starting your own practice, there are valuable insights to be gained from Knights’ approach.