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Eversheds Sutherland Launches Its Own ALSP With $127M Revenue Target | Legaltech News
Eversheds Sutherland is creating its own global alternative legal service provider, joining a trend among large firms with an international presence.

The firm announced Wednesday that it plans to launch a new entity to house its advisory, interim resourcing and managed service offerings, called Konexo, using existing teams in Europe and Asia. ES Agile, the firm’s flexible lawyering entity, has also been folded into the new business.
According to Eversheds Sutherland, the advisory, interim resourcing and managed service segment already accounts for £40 million, or about $50.77 million, of annual revenue. It encompasses three teams, known as ES Consulting, Corporate Secretarial and Volume Insolvency, which together saw business grow by 38% last year, according to the firm.

The goal is to continue growing that number, the firm said, to at least £100 million, or nearly $127 million, in annual revenue. Eversheds Sutherland’s global revenue for 2018, reported in February, was $1.175 billion (£900m).
“This is in response to what we’re seeing as a clear client demand,” Eversheds Sutherland co-CEO Lee Ranson said in an interview Wednesday. There was “a constant theme” in conversations with clients around using technology and moving away from the traditional legal model for “repeatable-type” legal work, he said.
newlaw  subsidiaries  managedlegal  firms  innovation 
4 weeks ago by JordanFurlong
Forum Magazine: A Safe Space for Innovation — Law Firms Creating “Captive ALSPs” | Legal Executive Institute
oday’s market for alternative legal service providers (ALSPs) has become larger, quickly growing and more broadly adopted by clients looking for more nimble or lower cost options to law firms alone.

In response to clients’ needs, ALSPs are leveraging different business models, emerging in all shapes and sizes from the Big Four accounting firms to small, tech-savvy disruptors, according to a new report on the sector from Thomson Reuters Legal Executive Institute, in partnership with Georgetown University Law School’s Center on Ethics and the Legal Profession, the University of Oxford Saïd Business School, and legal research firm Acritas.

One of these new formations — captive ALSPs — has seen law firms seek to regain their competitive edge in the market by essentially creating in-house ALSPs that can allow the firm to pitch a wider range of services to clients and offer oversight of the work while keeping costs low. Indeed, this was the first year the report measured the impact of captive ALSPs, and it found that the new model was making “headway among law firms of all sizes in both the US and the UK.” Further, when captives are included in ALSP market totals, “the scope of the alternative legal services model and market expands significantly,” the report notes.

Lisa Hart Shepherd, CEO of Acritas, said captive ALSPs were included in the report totals this year because they’ve grown very quickly and are becoming quite commonplace within the market. “Among the large law firms, if they don’t already have an in-house ALSP, then they are looking at having one,” Hart Shepherd says. As part of the report, Acritas conducted telephone interviews with representatives of 35 ALSPs located in the US, UK, and other countries. While law firms were not willing to release the revenue or growth figures for their captive units, some noted that the units had staff that numbered in the hundreds of employees.
newlaw  subsidiaries  r&d  innovation  firms 
4 weeks ago by JordanFurlong
Law Company Elevate Raises $25M, Aiming for 2021 Public Listing
Elevate Services has received $25 million in funding from a private equity firm as the Los Angeles-based legal services business aims internally for a public stock market listing in 2021.

Elevate has also predicted its revenue will climb to $76 million in 2019—and to more than twice that amount by 2023, according to a presentation obtained by Bloomberg Law.

Elevate’s growth and drive toward a public listing shows how fast-growing the market for nontraditional legal service models has become. Elevate, which bills itself as a “law company,” provides consulting, technology and other services to law firms and law departments.
newlaw  outsourcing  process 
6 weeks ago by JordanFurlong
Exclusive: Unregulated virtual firm granted SRA waiver - Legal Futures
One of AGL’s selling points to lawyers is that it says they keep a greater share of the fees they generate – up to 90% – than any of the equivalent firms, of which there is a growing number, such as listed law firm Keystone Law, gunnercooke and Carbon Law Partners.

At the moment, solicitors working for unregulated businesses have to call themselves non-practising, but the AGL waiver means that any solicitor working at the firm can operate under their title without having to seek an individual waiver.

Founder Lindsay Healy is a former Norton Rose solicitor and latterly a general counsel at technology company Xchanging.

He set up AGL last year to offer a wide range of commercial law services. It started with him and two clients and now has 15 lawyers and 80 clients.

Mr Healy outlined major ambitions for the firm, which he said would have 19 lawyers by the end of June and could reach 75-100 by the end of the year.

Every lawyer at AGL can work flexibly and everyone – including Mr Healy – is paid in the same way and receives an equal share in the profits. “Nobody takes profit from anyone else’s work,” he said.

Lawyers retain an initial 85% of what they bill; the remaining 15% goes towards AGL’s overheads, but whatever is left after that is distributed back to the lawyers as profit – in proportion to the hours they have billed – less 5% donated to charity, which is currently Great Ormond Street Hospital.
clementi  newlaw 
6 weeks ago by JordanFurlong
How and Why a Cynic of “DIY” Law Built a DIY Divorce Platform
With that information in hand, I next had to map out the user experience, which may seem elementary to developers and UX people but it was all new to me. I had to think about every aspect of what happens in the divorce process — not just the forms and procedural steps but the whole process from start to finish. When someone says they want a divorce, it requires not only thinking about living situations, custody of children, and finances but also managing the fear, anger, pain, and sadness that go along with those big life changes. It was crucial to account for the emotional aspects of the process in the user experience.
newlaw  family  access  innovation  startup 
may 2019 by JordanFurlong
UnitedLex Luthor | Above the Law
UnitedLex doesn’t have that same incentive. The client relationship lies with the company itself, not its staff attorneys, and it treats skill sets as ultimately fungible. A young attorney growing their skill set just means that attorney has to be staffed onto different matters, and the company needs to find someone else to handle the simpler tasks. Barring an altruistic motive to do the right thing, the company gains nothing from staff development except some administrative headache.

There’s also the problem that nobody gets rich driving a rideshare. In fact, once less apparent costs like depreciation and repairs are accounted for, many drivers are making less than minimum wage. Some outright lose money. The biggest winners of the Lyft and Uber revolution are Uber and Lyft themselves, and the public that now has access to cheap, fungible, convenient ridesharing. The drivers who generate all that benefit get just a sliver of the pie. I worry about that same dynamic transferring over to the legal market. Everyone in the UnitedLex model seems poised to win big, except the lawyers actually making it all possible.

Whose Story Is It?

It’s easy for me to air these kinds of concerns because if UnitedLex is Lyft, law firms are the traditional cab industry that Uber and Lyft have attacked. UnitedLex is a competitive threat to me, and thousands of Biglaw attorneys across the world.

Yet I don’t think my reaction is entirely based on self-interest. I wouldn’t be where I am today without the mentorship and growth opportunities that the law firm model provided me. Done right, the law firm model becomes about more than making money. It’s about passing down knowledge, skills, and an ethic to a new generation, helping people bootstrap themselves into a successful career. I struggle to see UnitedLex or any of its many competitors doing the same. While it may make its clients or shareholders wealthier, it may make our profession poorer.
newlaw  flex  admission  training 
may 2019 by JordanFurlong
In-House Innovation: Managed Service Providers Targeting Corporate Law | Legaltech News
“We know the quality [of a law firm] is excellent,” Stockton noted. “The law firms are trusted; we’ve worked with them for a long time, but are we paying the appropriate amount.”

However, a larger disruption in the market is afoot with corporate legal departments actively looking for ways to measure a law firm’s quality compared to vendors, Stockton said. One area that is easy to gauge is e-discovery.

“If you think about e-discovery, we can measure the accuracy of what is being done,” Stockton said, adding if the service provider has provided identical results to a law firm, “there’s no incentive to use a law firm.”

Ultimately what in-house legal departments are often looking for is a single one-stop shop for legal services.

“I want to see the legal management service providers rebundle so we can go to one provider,” Stockton said.”
newlaw  clients 
may 2019 by JordanFurlong
Axiom To Go Public in USA – But What Difference Will It Make? – Artificial Lawyer
But….to the bigger question: what does it mean?

Axiom has raised a total of $28M in funding according to Crunchbase, back in 2013. The group has been going since 2000 and grew from a lawyers on demand business to something far greater and more complex.

So, the shareholders are going to get rich. But, what of the strategy? Ah…well……To complicate matters they have also made the company into three companies:

Axiom, on-demand corporate legal talent;
Knowable, enterprise contracts intelligence;
and Axiom Managed Solutions, next-generation solutions for complex legal work at scale – i.e. a managed legal services arm or MLS.
So….this seems to suggest that the lawyers on demand bit – i.e. Axiom is what will get the massive injection of $$$…which, if that’s the case won’t really make a big impact on things, as it’s not systemic enough to change how law firms/clients work. It just builds scale.

However, if Knowable and the MLS bits were also involved in the IPO, that’s another story…and would be an interesting foil to the growth of Elevate.

…right, just heard back from their spokesperson: it’s just the Axiom – lawyers on demand bit that will do the IPO.

OK, so now we have a more clear picture. And much as it would be great to say this will change the world, it probably won’t. Having a far larger service to provide lawyers as and when needed to corporates and also law firms may create competition for the other on demand services out there, including that of Elevate, and those of some law firms in the market. But, on demand lawyers alone won’t change the means of legal production.
newlaw  project  flex  process 
march 2019 by JordanFurlong
Explaining Elevate’s Recent Acquisitions (088) | Legal Evolution
We thought long and hard about where our gaps were. We didn’t want to poach from our competitors, so we decided that the best way forward was to invite seasoned leaders to join Elevate, by persuading them to tie their rafts to ours. We then asked customers (even including those that had decided not to work with Elevate) to tell us which entrepreneurs, managers, and companies they thought were our best competitors!

How would we finance all these organic investments and acquisitions in a way that ensured that management didn’t give up control? The law department of one of our customers, Morgan Stanley, introduced us to their private credit and equity group, Expansion Capital. The Expansion Capital team’s advice was helpful in designing our growth financing strategy. By the end of 2017, we closed a $25 million credit facility with them to finance organic investments and the strategic acquisitions.

The acquisitions we made were based on the following three pillars that have been at the heart of Elevate for many years: Strategy, Culture, and Customers.
process  competition  strategy  newlaw  management 
march 2019 by JordanFurlong
Axiom to Go Public, Applying for IPO and Spinning Off Two Businesses | Legaltech News
Axiom spun off its data analytics arm Knowable and legal solutions platform Axiom Managed Solutions last week (February 12) in preparation for the move.

The company currently employs over 2000 people globally, and in 2017 reported revenue of $300 million, according to CEO Elena Donio.

Ashurst recruited Axiom‘s services in 2016 as part of a drive to offer further regulatory advice to the law firm’s banking clients, in what was the legal services provider’s first official law firm partnership.

In 2016, Mishcon de Reya hired Axiom’s London general manager Nick West as its chief strategy officer at the firm.

The application comes amid a raft of alternative legal service business movement in the market and an increasing interest in law firms floating.

Earlier this month Big 4 accountant EY signed a deal to begin using Slaughter and May-backed artificial intelligence company Luminance across its global legal network.

And DWF has joined several law firms moving to offer an alternative business proposition by cementing its aim to float on the London Stock Exchange.
newlaw  competition  flex  contracts 
february 2019 by JordanFurlong
The State of Alternative Legal Service Providers - Prism Legal
The report Alternative Legal Service Providers 2019 was released last week. Perhaps influenced by the subtitle, “Fast Growth, Expanding Use and Increasing Opportunity”, the many articles covering it suggested the findings portends trouble for law firms.

I read the report differently. Below, I focus on a few findings and statements that stuck out for me. This is not a summary so I recommend reading the entire report to learn more about alternative legal service providers.

The report is by “Thomson Reuters Legal Executive Institute, in partnership with Georgetown University Law’s Center on Ethics and the Legal Profession, University of Oxford Saïd Business School, and U.K.-based legal research firm Acritas.” I first saw it publicized at the TR Legal Executive Institute blog on 28 January 2019 at Alternative Legal Service Providers Report 2019: ALSP Market Experiencing Rapid Growth & Expanded Use.

High growth – 12.9% CAGR reported. And a Ron caveat. “In just two years, revenues for alternative legal services providers have grown from $8.4 billion in 2015 to about $10.7 billion in 2017. This represents a compound annual growth rate of 12.9% over that period.” That is 27% over two years, a number I will reference below.
newlaw  data 
february 2019 by JordanFurlong
Behind Elevate’s Buying Binge: Liam Brown’s Meticulous Strategy | The American Lawyer
One answer can be found on a single piece of paper that Brown uses to detail the company’s strategy. It includes three broad “value propositions,” roughly 20 “initiatives” and, for each of those, some five or six more specific tasks are detailed. In short, there is a lot more building to do at the 1,200-employee company that Brown said expects to bring in about $80 to $90 million in revenue this year.

Brown doesn’t expect his recent acquisitions to drastically alter the company’s trajectory. He said it may take 10 to 20 years to reach his long-term financial goal to hit $1 billion in revenue. But each piece is required to offer what Brown sees as a full suite of legal services ranging from traditional law firm partner advice to advanced offerings that require artificial intelligence expertise, which the company bolstered through its November purchase of Dan Katz’s LexPredict business.

“We think building a multidisciplinary company is going to be how you solve business problems in the future that have a legal element,” Brown said.

Elevate’s strategy starts with three main “value propositions” Brown says the company offers. Those are: ”Innovate” how legal work is done by law departments to manage risk. “Improve” visibility, predictability, control and costs of law department operations. And to “elevate” services for law firms to improve the value and efficiency they deliver to clients.

Elevate has won the work to back up this strategy. Partnering with its ElevateNext law firm platform, Elevate has changed the way Univar Inc.’s legal department handles portions of its work and how it pays outside counsel. On the law firm side, Hogan Lovells has said it is partnering with Elevate to offer flexible lawyer staffing to clients.
offshoring  newlaw  innovation 
february 2019 by JordanFurlong
DWF unveils plan for blockbuster stock market listing - Legal Futures
The blockbuster listing – likely to value the firm at around £600m – would make at least 25% of the firm’s shares available to investors. Though no figures have been released yet, DWF is thought to be looking to raise £50-100m.

The selling partner shareholders would hold a majority of the shares after admission.

DWF has 27 offices in 14 jurisdictions and employs 3,100 people focusing on insurance, financial services and real estate. It has a connected services division made up of 12 businesses offering other services around the legal advice.

In a ‘potential intention to float’ notice published today, the firm said it saw “a large consolidation opportunity… in a highly fragmented global market for legal and connected services”.

It said the acquisition growth strategy would focus on international expansion and accelerated development of the connected services division.

On the latter, it said: “Acquisition priorities are to: (i) acquire new product, software and technology capabilities, (ii) improve the geographical coverage of existing service lines, (iii) gain additional complementary services and solutions for DWF’s practice areas and specialisms and (iv) build out DWF’s current consulting capabilities within the connected services market to take advantage of the sizeable market opportunity.”
clementi  innovation  newlaw 
january 2019 by JordanFurlong
Law Firm Sales Push Growth of Alternative Services Providers, Report Says | Legaltech News
The market for so-called ALSPs was estimated at $10.7 billion in 2017, the report says. The percentage of law firms that use ALSPs for at least one service, including e-discovery, document review, legal research or litigation support, rose to 87 percent in 2018, up from 56 percent in 2016. At legal departments, that figure rose to 74 percent from 60 percent.

While those growth rates exceeded the expectations of a comparable report two years ago, the latest report predicts the market has even more significant growth ahead. It says ALSP owners expect to increase at a 25 percent annualized growth rate “over the next few years.” At that pace, the market would reach $20 billion in sales in three years.
For comparison, the $10.7 billion market in 2017 is slightly smaller than the combined revenue of the four largest firms in the Am Law 100. A $20 billion market would be about the size of the 10 largest Am Law 100 firms.

Large law firms said they were increasingly turning to ALSPs for strategic business reasons, even if their concerns about the quality of ALSP services remain. For instance, 53 percent of firms said using ALSPs could help them expand and retain client relationships, up from 44 percent two years ago. Similarly, 55 percent of firms said their traditional business model was being challenged by ALSPs, while 44 percent said so two years ago. And 39 percent of firms said they are facing increased pressure from clients to use ALSPs, up from 18 percent two years ago.
newlaw  competition  offshoring 
january 2019 by JordanFurlong
There’s A New World Coming | Above the Law
Use of all these methods are increasing, according to the 2018 Blickstein Group Law Department Operations Survey, published in collaboration with Consilio, which is out today.

“The legal services delivery model is now perceived as an ecosystem of providers,” said Robin Snasdell, managing director and group lead for law department management consulting at Consilio. “Now, who does the work is optimally the right resource at the right cost with the right credentials. It’s no longer necessarily about which law firm partner went to law school with in-house counsel. It’s a revolution of sorts.”

Most corporations’ legal work is still handled by law firms, and that is a sacred relationship that will continue. Yet, as the survey illustrates, LDO professionals are exploring, and often embracing, new developments and opportunities. In fact, almost 78 percent say they use ALSPs, most frequently for document review, contract review, due diligence, and contract drafting. This is probably the single best piece of evidence that the duopoly is breaking down.
clients  competition  newlaw 
january 2019 by JordanFurlong
Legal’s 2019 Tech Challenge: Getting Everyone on the Same Page | Corporate Counsel
For many legal departments, the demands of 2019 will not be much different from recent years: Do more work with less resources.

“The scope of work in many legal functions has increased, and the amount of work various legal teams are tasked with [has increased], with not significant increases in their ­budgets or headcount,” says Sowmyan “Sam” Ranganathan, senior director of information governance and legal ops at pharmaceutical company AbbVie and chair of the ­Association of Corporate Counsel (ACC) legal operations group.

Facing such belt-tightening, legal departments are striving to elicit efficiencies by learning skills like project management and, equally as important, leveraging legal technology.

Ranganathan says that for many this year, such technology will likely include contract management and workflow automation products. But there are other platforms corporate legal teams are eyeing to streamline their operations as well.
clients  it  process  newlaw  innovation 
january 2019 by JordanFurlong
Is UnitedLex the Future? Dan Reed Thinks So. | The American Lawyer
So I found myself on a conference room floor at Latham & Watkins’ Midtown offices, trying to work an espresso machine with the help of a receptionist—the lone Latham employee who appeared to know I was there.
Reed was there with at least one other UnitedLex executive—Nancy Jessen, a longtime Huron Consulting executive who now runs the part of UnitedLex’s business that is seeking to transform corporate legal departments through a blend of outsourcing, technology and process improvement. She was a leader on a deal with DXC Technology that, prior to the mystery of Reed’s presence at Latham that morning, I had been most eager to discuss.

The DXC deal was novel in an industry hungry for clues about its own transformation. No other legal department had “rebadged” 150 lawyers to a third party in the way DXC did with UnitedLex. No other legal department had told the public it cut its legal spending by 30 percent. No other legal department was planning, with the help of UnitedLex, to roll out a kind of TaskRabbit model (think: gig economy) whereby lawyers, as independent contractors, would negotiate the company’s contracts on an ad hoc basis—from their homes, or the nearest coffee shop.

Today, 14 percent of America’s law school graduates get hired by law firms with more than 100 lawyers. They are the lone cohort of graduates that, over the last eight years, has reliably earned six-figure median salaries, according to the National Association of Law Placement—testimony to the grip the nation’s largest firms have had on corporate America’s legal dollars. If UnitedLex’s model takes off, what happens to that percentage—and to the law schools, lawyers, law firms and corporate legal departments designed around current expectations? When corporate legal work gets handled in bits by a larger swathe of the legal workforce, who wins and who loses?
offshoring  newlaw  innovation  competition 
january 2019 by JordanFurlong
New year brings major New Law deal as Elevate acquires Halebury
US-based New Law darling Elevate has continued its acquisitive form with the purchase of UK-based flexible lawyer firm Halebury, creating a combined business of over 1,000 members of staff and $70m in annual revenue.
newlaw  flex  innovation  merger 
january 2019 by JordanFurlong
Bryan Cave Leighton Paisner Launches Cantilever | Business Wire
Bryan Cave Leighton Paisner (BCLP) today launched a combined legal operations consultancy division that brings together multi-award-winning teams on both sides of the Atlantic. The new division will operate globally under the new name of Cantilever. It brings together the BCXponent and Streamline brands, as well as other teams that support our clients’ in-house teams in improving their legal operations and service delivery to their businesses.

The division consists of 20 highly qualified process engineers, data scientists and technologists who are experienced at working with in-house teams, lawyers and attorneys to help law departments improve legal service delivery to the business. The team has also developed its own proprietary software platform, called CrossLite, which is a sophisticated data management and analytics tool that has been specially designed to meet the needs of the modern legal function.

Cantilever will be led by co-founders Katie DeBord and Chris Emerson. DeBord is Bryan Cave Leighton Paisner’s Chief Innovation Officer, while Emerson is the firm’s Chief of Legal Operations Solutions. The team also includes highly regarded legal technologist Bruce Braude, Director of Legal Operations Solutions for EMEA.

Services will include: providing legal operations and technology consultancy; designing effective and efficient processes and systems for contract, matter and litigation management; and delivering document and decision-making automation solutions.
innovation  consulting  ops  newlaw  competition 
november 2018 by JordanFurlong

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