Faced with increased competition, many law firms are exploring new ways to grow their business—and a recent trend is for firms to leverage litigation finance as a tool to expand their defense practices.
Corporate balance sheets rarely face as much scrutiny as they do during tax season. Nevertheless, among companies involved in pending legal matters, the accounting treatment of litigation is often overlooked—and companies may be losing value as a result.
Asset recovery is a process underpinned by the acquisition and analysis of information about a judgment debtor. Whether it is identifying assets, evidencing links between them and the debtor, or developing strategic pressure points to bring someone to the table—information is critical. Generating information by means of traditional investigation (as undertaken by myriad corporate intelligence firms) is insufficient alone. We focus on how to augment this approach with discovery, specifically how legal remedies available in one jurisdiction can be used to obtain information for enforcement purposes elsewhere.
Towards the end of litigation, law firms often have to wait for their payment from a negotiated settlement—in both single-party matters and in mass and class actions. By monetizing settlements and receivables, firms gain immediate access to capital that can be used for a variety of business purposes.
By all accounts, the Panama Papers saga failed to shake toughened professionals to the core–so Daniel Hall argues that in addition to legislative powers, we need a ground-up approach to solving the problem exposed so robustly a year ago.
An expansive approach to addressing legal finance needs can add value for law firms and the clients with whom they work. With that in mind, we explore a few of the evolving ways in which lawyers and their clients—as well as specialists in finance, private equity and investment banking—can use legal finance to monetize asset value and hedge risk.
In the business of law, the focus tends to be on financing fees. But legal expenses from e-discovery to experts will pose an ever-greater burden. Burford helps corporate legal teams move these costs off balance sheets, and we help firms offer expense financing to their clients in conjunction with or separate from financing fees.
In an article first published in Financial Director, Leeor Cohen discusses why unfavorable accounting of litigation leads to “no-win” situations for businesses–and how to work around it.
Monetizing a litigation judgment or arbitral award through asset recovery can be a challenge, as the work required is generally multi-faceted, encompassing human inquiries, detailed public record research, the establishment of a legal strategy tailored towards multiple jurisdictions, creative problem solving–and a little luck. While every scenario is different, this guide outlines what to expect when pursuing asset recovery.
When private equity firms analyze prospective deals, they consider everything from the industry and what the company does to the senior team and the company’s recent financial performance. During what is otherwise an exhaustive diligence process, however, one of the most significant assets of the business is largely overlooked: litigation.