PI calculator launched to help struggling practices sell off caseloads

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Legal M&A specialist Invest In Law has created a calculator to help PI firms compare the prices that they would get for their caseloads at current market rates.

 

The PI Calculator, as it is called, shows firms how the main buyers of PI work would structure a deal for their Work In Progress (WIP). Results are shown on a bar chart and graph, allowing firms to judge which buyer could offer the best packages over the most convenient timeframe.

 

According to Invest in Law, all the buyers are reputable, well-funded firms, who pay fees to the company, allowing sellers to us the service free of charge.

 

Invest In Law Managing Director, Ben Holmes, said, the company had already helped many firms to exit the PI market.

 

“You have an asset – namely your WIP. However, following the legislative changes this is a diminishing asset as the proportion of your post-Jackson WIP increases, the overall value decreases and these current market rates will inevitably change," said Holmes.

 

"Running files down yourself has its problems. The best staff leave first, and morale is dented by monthly redundancies leading to inefficiency.

 

"This file transfer can happen very quickly and efficiently, with industry leading acquirers very familiar with the process. It can happen in a tax efficient manner, so you should receive more overall than managing the run-off of the files yourselves, and saving yourselves the considerable hassle of doing so."

 

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Marek Handzel

Marek Handzel is the editor of Claims Magazine. Marek welcomes articles, letters, or feedback from readers and can be reached by emailing marek.handzel@barkerbrooks.co.uk