NewLaw, NewMoney: Eversheds unveils its New Law offering and sets £100m revenue target
July 16, 2019
2 min read
What's going on here?
Eversheds Sutherland is launching a new entity called Konexo to act as a global alternative legal service provider. Konexo will serve clients in Europe and Asia, offering them financial, consulting, remediation and traditional contract legal services. It will also incorporate ES Agile, Eversheds’ flexible lawyering entity.
What does this mean?
Alternative legal services, more commonly known as ‘NewLaw’ is taking the legal industry by storm. NewLaw is a global trend where law firms take a model, process or tool (like document automation, cloud computing or artificial intelligence) to change how legal services are delivered and make them more transparent. The NewLaw model also utilises lean, low-overhead, highly skilled legal teams which are specific to client’s requirements. This makes NewLaw services more affordable.
Eversheds is taking a bite out of NewLaw to grow its revenue in alternative legal services to £100m over the next 5 years. The entity will be a separate corporate structure, first owned by the partnership, but will be open to external investment. Eversheds sees Asia and America as key market opportunities, therefore Konexo will be launching in Kuala Lumpur soon and the US in September.
What's the big picture effect?
Konexo is being launched in reaction to increased activity in the alternative legal services market. Clients are more interested in buying services from firms with a broader range of services than a traditional law firm. This means if traditional firms did not diversify into NewLaw, alternatives like the Big Four or UnitedLex, would start cutting into main law firm revenues.
Eversheds’ response is therefore in line with that of other traditional law firms, which have already begun moving into the market. Pinsent Masons for example, launched a flexible lawyering entity called Vario, whilst Herbert Smith Freehills started a technology solutions and e-discovery business called Alt Legal Services Center.
NewLaw is a market with investment potential for traditional and alternative companies alike. Launching Konexo is therefore a good strategy; it stays consistent with the firm’s reputation for delivering innovative and commercially relevant advice, which in the long run, will keep the firm profitable and competitive with the likes of the PwC or Lawyers on Demand.
Report written by Evania D’souza
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