According to London-based business advisers Menzies, if the Co-operative Bank deal had gone ahead with the purchase, the move would have immediately have given its Legal Services arm a major high street presence and an ability to attract clients that would rival that of a traditional high street law firm.
Moreover, the high levels of trust associated with the Co-op brand by the general public mean that medium-sized practices see Co-operative Legal Services as their main threat over the next 5-10 years.
Public trust
Peter Noyce, partner and head of professional services at Menzies, said that the bank’s decision puts the threat to traditional legal practices into abeyance, but it has not gone away completely. He said: ‘Given the wider pressures facing the sector, such as the outcome-focused regulation and well-capitalised market entrants attacking firms’ core client base, law firms will appreciate a degree of respite. However, this is temporary and regardless of what the Co-op decides to do in the longer term, the sector can expect a tough time from competitors skilled in using sophisticated retail practices to win public trust whilst generating substantial profits.’
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