Financial Services Group Buys Legal Firm In Further Growth of ABS Moves
Ben Thomson, LawFuel contributing editor
Pss . . wanna buy a law firm? The acquisition of Birdi & Co Solicitors by Fusion Consulting Group is a further example of how the legal industry in the UK is evolving as a result of deregulation around law firm ownership.
This trend, driven by the introduction of Alternative Business Structures (ABSs), allows non-lawyer organisations to own and manage law firms, a significant shift from the traditional partnership model that restricted ownership to solicitors.
Fusion Consulting Group, founded in 2015, is a multi-disciplinary professional services firm offering a range of services, including tax, accounting, business advisory, financial services, legal, recruitment, and digital marketing.
By acquiring Birdi & Co, a law firm specializing in M&A, corporate, commercial, property, and employment law, Fusion has strengthened its legal division and establishing a new central London hub.
Broader Context and Other Examples
Fusion’s acquisition is not an isolated case. The UK’s Legal Services Act 2007 paved the way for non-lawyer ownership and management of law firms through ABSs, which has led to a wave of new entrants, including professional services firms, private equity investors, and even non-traditional players like supermarkets and estate agents, all seeking to offer legal services as part of a broader client offering.
- The Big Four accountancy firms (EY, KPMG, PwC, Deloitte) have built legal arms in the UK using the ABS model, allowing them to deliver integrated legal and business services, although as we have pointed out those dreams of entering the legal arena may be fading for some.
- BT Law, a subsidiary of BT Group, was authorised as an ABS to provide in-house legal services and has since expanded its offerings to third parties.
- UnionLine, owned by trade unions, was established as an ABS to provide legal services to union members.
- In Australia, similar reforms have allowed non-lawyer ownership since 1999, with regulatory safeguards to maintain professional independence and client interests.
Such developments mean the traditional law firm partnership model is no longer the only option. ABSs and multi-disciplinary practices (MDPs) open up new avenues for career progression, investment, and collaboration with professionals from other sectors.
They also bring new competitive pressures and opportunities for innovation, as firms seek to differentiate themselves through broader service offerings and more client-centric models.
At the same time, these changes require careful attention to regulatory compliance, especially around professional independence and client confidentiality, as firms navigate the complexities of multi-disciplinary ownership and management.
In summary, the acquisition of law firms by non-law organisations, like Fusion’s purchase of Birdi & Co, reflects a shift in the legal industry towards integrated, client-focused service models enabled by regulatory reform.
This trend is likely to continue as more firms seek to capitalise on the opportunities presented by ABSs.
