It has recently been announced by the law firm Halliwells that it has auctioned off around 90 per cent of its bulk
conveyancing venture, previously known as HL Interactive LLP, to a management buy-out team for an amount, which is yet to be disclosed to the public.
Such a deal was decided upon as the result of a 5 per cent drop in profits, which took what had been a rising profit, down to £83 million for the company's most recent financial year, ending April 30th, 2009.
The team that jumped in and bought them out was run by HL Interactive’s chief executive, Matt Wightman, and was also funded by the Co-Operative Bank. Halliwells have not completely backed away from their previous work, and are keeping a 10 per cent equity stake in the business as well as appointing the former head of Royal Bank of Scotland’s retail operations, Mike Hutchins as chairman.
Mr. Wightman, who was previously in charge of the financial institution’s group at Halliwells for nearly ten years before he began to set up HL Interactive in 2004, said he felt that HL Interactive had "a strong brand and an excellent reputation", which means dropping conveyancing should not be seen as any irreparable failure.
"There are significant opportunities to increase our market share through organic growth and strategic acquisitions," he said.
The MBO team at HL Interactive were also given pointers from the accounting firm Alexander & Co and the law firm George Davies, which should be incredibly helpful to them at this stage.
Upon being questioned about the firm’s results, managing partner Ian Austin spoke of how he felt Halliwells, as a company had dealt with a "challenging" year and had taken it well, were sadly expecting more of the same in the coming times.
"The firm, however, has a very solid foundation and is ready to meet those challenges and develop the business further."
He said he felt that the business had experienced an impressive rise in its insurance and commercial litigation departments, areas in which the combined fee income has built to more than £34 million. The company also acquired AXA Insurance, Legal & General, Sheffield Forgemasters and United Utilities as clients.
"During the year, the firm has reviewed its costs and, as is the case with many businesses, undertaken certain measures to reduce costs. We will continue to monitor the marketplace closely," he said.
