keystone law - taking in private equity investment
TRANSCRIPT
KEYSTONE LAW
Taking in private equity investment
INTRODUCTIONS
• Simon Philips– 23 years experience as entrepreneur and investor
in technology and professional services organisations
– Founder of Root Capital in 2003
– Small boutique private equity firm providing both funding and operational expertise
– Prior investments in software, training services, HR services, media solutions, engineering services, outsourcing, management consultancy
INTRODUCTIONS
• William Robins
– Operations Director at Keystone Law
– COLP
– MLRO
– Previously corporate solicitor at BLP and Lovells
KEYSTONE IN A NUTSHELL
• Pioneer and market leader of the “dispersed model” for law firms
• Consultancy style engagement with partner-level lawyers
• ABS
• 150 lawyers
• 30 staff in central operations support
THE DEAL IN A NUTSHELL
• £3.15 million invested for 35%
• Mixture of money in and money out
• Exit co-founder
• 12 months from first meeting to completion
• Shared vision, business plan, objectives
• Bolster team with two new executive directors
• Invest more in IT
MOTIVATIONS - KEYSTONE
• Succession planning
• Market opportunity occasioned by changes in
– Attitudes
– Technology
• Ambition
– National
– International
MOTIVATIONS – ROOT CAPITAL
• Great business
• Impressive track record
• Investable business model
• Interesting sector
• Strong leadership and team
INVESTABLE MODEL???
“I have actually heard of them. I look forward to you making the business case. Sceptical. In principle I quite like the idea of revolutionising the legal market. But it’s stodgy. And no growth. And I thought we were already over-lawyered in the UK and, if so, the revolution will be slow. But I am sure you will prove me wrong…”
INVESTABLE CHARACTERISTICS
• New angle and model
• Has a following wind
• Scalable
• Robust revenues
• Economies of scale
• Barriers to entry
• Virtuous circle
• Growing market (lawyers and clients)
WHAT IS KEYSTONE LAW?
• Dichotomy
– Clients
– Lawyers
WHAT IS KEYSTONE LAW?
• Top 150 Law firm
• 150 partner level solicitors
• 25 areas of expertise including property, planning, environmental, property tax
• 15 sector focusses including retail
• Offering “Conventional Style” law firm advice, only……
– Smarter, quicker, better and more personal
WHAT MAKES US DIFFERENT
• Since incorporation (2003) we have taken an entrepreneurial approach
• Using technology to:
– Improve client service
– Reengineer the business of law
– Offer the best lawyers to our clients
WHY DID WE SET UP KEYSTONE
• Our clients wanted:
– A firm they could trust with all their work
– A firm that offered good value
– A firm where Partners do the work
– A firm where service comes first
– A firm where clients pay for advice not overheads
HOW DO WE WORK?
• Dedicated high tech centralised team handle the firm’s administration
• A network of offices and technology allow lawyers the ability to work efficiently from any location
• Experienced lawyers focus on legal work
• Custom built intranet allows seamless delivery of services
• Effective IT allow teams to work together
Senior associates
Associates
Junior associates
Trainees / paralegals
Support staff
Partners
The Conventional Law Firm ModelWhere do the clients want the work done?The Keystone ModelWhere is the work done?
THE HIDDEN COST OF TEAMS
(30)
(as required)
(150)
Paralegals
Partners
Senior Associates
Associates
Junior Associates
Trainees / paralegals
Support staff
At a traditional firm this means you may speak to a partner
but the work is carried out by less experienced people
THE HIDDEN COST OF TEAMS
Client
Partners
Support staff
At Keystone your work will always be done by a Partner
THE HIDDEN COST OF TEAMS
Client
Senior managementSenior management
Partners’ dining room
Corporate artwork
Meeting rooms
Library
HR department
IT department
Staff canteen
Typing pool
Support staff
Reception team
Support staff
IT department
Meeting rooms
OVERHEADS OF TRADITIONAL LAW FIRMS
Senior management Meeting rooms
IT department Support staff
KEYSTONE’S NEW MODEL
Shared hub
office
Serviced
office
Home office
At client’s
office
On train
With client
off site
Senior management Meeting rooms
IT department Support staff
Hot desks and offices
Our technology allows us to work efficiently from any location
LEGAL FEES EXPLAINED
Traditional Law Firms
LEGAL FEES EXPLAINED
Keystone Law
BENEFITS OF THE KEYSTONE MODEL
• All the advice being provided by senior lawyers
• Client intimacy
• Efficiency + agility
• Lower overheads reflected in lawyer rates
WHAT IS KEYSTONE LAW?
• Lawyers
– Place to advance their career
– Better income
– Better work life balance
– World class support
– No politics, debts, billing targets, admin etc
