The Situation

A £20m international law firm specialising in legal services to the insurance sector was approaching a planned sale. The Partner group had identified a strategic opportunity to exit through a trade sale, but with the business carrying a significant volume of aged debt and unbilled work-in-progress, there was a real risk that value would be lost in the transaction — either through a depressed valuation or through a buyer discounting the quality of the firm's receivables.

Working capital had not been actively managed as a priority, and the systems and processes underpinning debt collection and WIP tracking were not fit for purpose ahead of a rigorous due diligence process. The Partners needed someone to come in, take control of the financial position, and protect the value they had spent years building.

The Engagement

We were engaged on a 3-month assignment to stabilise cash and liquidity, and to prepare the financial position of the business for sale. The work spanned four interconnected areas.

First, we conducted a full review of the firm's debt and WIP ledgers — mapping the age, recoverability, and billing status of a book with over £3m at stake. Working directly with the Partner group, we established clear ownership of aged matters, challenged write-off assumptions, and drove a structured recovery programme that materially improved the firm's cash position during the assignment.

Second, we addressed the underlying systems and processes. Billing disciplines, matter management, and cash collection procedures were all tightened — not just to recover value in the short term, but to present a well-run operation to prospective buyers.

Third, we provided regular progress reporting to the Partners throughout, giving them clear visibility of cash flow, recovery performance, and the evolving shape of the working capital position as the M&A process developed.

Finally, we worked closely with the M&A advisors to ensure that the debt and WIP position was accurately and compellingly presented during the sale process — making the case for the quality of the book and supporting the valuation narrative throughout.

The Outcome

The firm was successfully sold to a trade buyer through an accelerated M&A process. The rigorous management of debt and WIP during the assignment — and the credibility of the financial position presented to the buyer — proved central to preserving value for the Partner group through the transaction.