Lawfront says it overpaid for £17m Slater Heelis, sues five partners

Private equity-backed legal consolidator Lawfront has launched a £4.6 million High Court claim against five Slater Heelis partners over warranties given during its acquisition of the Manchester firm.

The claim has been brought against former managing partner Chris Bishop and former department heads Simon Wallwork, Chris Partington, Mark Heptinstall and Will Henson, who acted as warrantors on Lawfront's £16.9 million purchase of the firm in April 2024.

The claim, signed by Lawfront chief executive Neil Lloyd, centres on the valuation of Slater Heelis' Court of Protection practice.

The dispute

According to claim documents seen by Non-Billable, Lawfront alleges Slater Heelis overstated the value of legal fees it expected to recover from Court of Protection work by including debts and work in progress that were unlikely ever to be paid.

Lawfront alleges a sampling exercise found many trade debtor clients should have been treated as hardship cases as they had less than £16,000 of assets and that fee earners had spent substantial time supporting clients who could not afford the associated fees.

It claims Court of Protection balances were overstated by roughly £603,000 in trade debtors and £270,000 in WIP, inflating the firm's reported profits and resulting in an overvaluation of up to £4.6 million.

Lawfront is seeking damages for breach of warranty, together with additional costs, including management time and legal fees.

In a statement provided to regional news outlet TheBusinessDesk.com, Mark Fairclough of Eleven Law, acting for the defendants, said: "We do not propose to comment in detail in respect of on-going High Court proceedings but can confirm the defendants entirely reject the allegations made against them, and they shall be defending this matter robustly.”

Lawfront declined to comment. Pinsent Masons is acting for Lawfront in the proceedings.

‍Expert takes

Zulon Begum, a partner at CM Murray who advises partnerships and professional services businesses, said: “You would expect a sophisticated PE buyer to have carried out extensive due diligence before completing an acquisition.”

She added that even where there is substantial due diligence, buyers rely heavily on the warranties they receive.

Out of the five partners named in the claim, two remain partners at the firm and former Slater Heelis managing partner Bishop is now a consultant partner.

“It is easier to pursue former owners than current business partners. Once the sellers have left, the commercial and personal sensitivities are reduced,” Begum said.

When the sellers are still critical to the business's success, the buyer and sellers remain closely tied. It also poses questions about what it means for the wider legal consolidation market.

Begum said: “Aggressive claims risk damaging relationships, destabilising leadership, and ultimately undermining the investment itself.”

Legal industry consultant Adil Taha of Taha Capital said: "This is more damaging reputationally than financially. Lawfront and its private equity backers can absorb a £5 million claim, but public litigation against partners risks raising questions among potential acquisition targets and future buyers."

The broader PE landscape has also changed since the acquisition, making room for potential buyer’s remorse.

Begum said: “Acquisitions completed at peak valuations may be reassessed in a tougher market, against changing growth expectations and the disruptive impact of AI on law firm business models. It is therefore unsurprising that historic deals are coming under closer scrutiny.”

Buy-and-build

Founded in 2021 and backed by London-headquartered private equity firm Blixt, Lawfront has rapidly expanded through acquisitions of regional law firms that continue operating under their existing brands.

The Slater Heelis deal was the group's eighth acquisition. Since then, Lawfront has continued its expansion, including its acquisition of Reading-based Field Seymour Parkes earlier this year.

Lawfront has argued that increasing investment requirements in areas such as AI and technology are making scale increasingly important for regional law firms, positioning its acquisition strategy as a way for firms to access shared investment while retaining operational independence.