SGI Legal buys out Challinors' personal injury work

Deal is one of several Midlands firm's administrators are understood to be completing this week

Liverpool-based claimant PI firm SGI Legal has bought out the personal injury work of Challinors, Solicitors Journal can reveal.

It is understood that it is one of a number of deals Challinors' administrators RSM Tenon are expected to close in the next few days as they sell off the Midlands firm's work in progress.

The SGI deal, for an undisclosed sum, includes 200 files ranging from serious injuries to employer liability and public liability. None of the Challinors partners will transfer to SGI.

SGI's managing partner Simon Gibson said several other deals were being considered, one of which should be finalised in the autumn.

"We view the acquisition as a real opportunity in the market to strengthen our balance sheet and grow our turnover," said Gibson.

"We're in discussion with about half a dozen firms," he continued. "We talk to a lot of banks and firms, and there is almost one opportunity a day. And it's also an opportunity for firms looking at their own strategy to realign their portfolio."

SGI funded the deal from its own cash reserves and Gibson said the firm's unique structure allowed it to complete the transaction in just two weeks.

"Our biggest advantage in these situations is our management and our IT," he said. "Unlike traditional firms the leaders at SGI are not involved in fee earning, so we can move very quickly to capitalise on opportunities."

The purchase of Challinors’ WIP is SGI’s first acquisition since becoming an alternative business structure (ABS) on 1 August.

SGI launched just over a year ago and had a turnover of £5m in its first 12 months.

The firm has four solicitor partners, who manage the business full-time and nearly 60 staff, of whom just six are qualified lawyers.

Mark O’Connor of O’Connors LLP advised on the legal aspects of the deal, with Citadel Law's Lesley Graves advising on due diligence.