Which State Law Firms Are at Risk of Losing Their Practices?

See where your state falls on the risk quotient.

It is my belief that some single state law firms are more at risk of being consumed or losing their client base than others may be based on the volume of accounts worked in those States. As large credit grantors work to consolidate their vendor networks, so shall vendors consolidate. Many collection agencies and law firms will be forced to consider either expanding greatly or merging to demonstrate value to their clients and create retention.

The regulatory environment and increased demands from issuers and large debt buyers will dramatically affect all market segments in the collection industry. Collection law firms will be impacted especially hard as issuers look to engage firms with a multistate focus. This will mean that many firms will be consolidating and these mergers will leave some firms without any clients.

For example if you are a single state law firm in the state of Maine it is very likely that one of two scenarios will determine your future. The first would be for you to merge with other firms to create a multistate firm and use the new client base to expand into other states. The second possibility is that you will not merge with another firm and continue operating in a single State, while other larger, consolidated firms absorb your client base as credit grantors move towards consolidated legal networks.

In order to gain market share in 2014 a law firm must be multistate, highly compliant, using an enterprise software platform and provide a value proposition to the large credit grantors and debt purchasers.

It is my opinion that in 24 months the number of collection law firms that will continue to operate will be reduced by 50% or more. These firms will be much larger and will work all the multistate volume from their clients.

If you are a single state law firm today and you are looking for advice and strategic planning for the future Lighthouse Consulting has your solutions. If you are looking to acquire single state law firms in 2014 Lighthouse Consulting has your solution as well.

Here is a list of states by risk priority with 10 being the highest risk and one being the lowest.

 

List of State and Priority of Risk

Arkansas

9

Massachusetts

7

Delaware

9

North Dakota

7

District of Columbia

9

Utah

7

Maine

9

Wisconsin

7

Connecticut

8

Georgia

6

Hawaii

8

Illinois

6

Idaho

8

Michigan

6

Indiana

8

Minnesota

6

Iowa

8

North Carolina

6

Kansas

8

South Carolina

6

Louisiana

8

Arizona

5

Mississippi

8

Kentucky

5

Missouri

8

Nevada

5

Montana

8

Ohio

5

Nebraska

8

Virginia

5

New Hampshire

8

Maryland

4

New Mexico

8

New Jersey

4

Oklahoma

8

Pennsylvania

4

Oregon

8

Tennessee

4

Rhode Island

8

Washington

4

South Dakota

8

Colorado

3

Vermont

8

Florida

3

West Virginia

8

Texas

3

Wyoming

8

California

2

Alaska

7

New York

2

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Lighthouse Consulting has been providing solutions to operational compliance challenges for ARM companies for over a decade. Contact Phillip Duff, CEO of Lighthouse Consulting today and let us help you navigate the compliance landscape.

Phillip Duff, CEO | www.LighthouseConsultingInc.com | Phil@LighthouseConsultingInc.com | (904) 687-1687

Phillip W. Duff

Phillip W. Duff the Founder of Lighthouse Consulting was trained in Six Sigma while working for Bombardier Capital in 2001, and is highly successful helping organizations improve their processes using the Six Sigma methodology. Mr. Duff has consulted with numerous companies over the last 10 years and has shown the ability to enact cultural change in a company. He has also initiated programs proven to drive positive revenue growth both as an employee and a consultant. His focus is to help CEO’s with a focus on growth. His knowledge of technology and background in debt collections have combined to help companies automate processes and identify which processes provide profits. Mr. Duff has also developed a unique process of initiating cultural change as a part of developing a revenue-driven atmosphere in a variety of formats. This unique philosophy and technique are unseen to date. His substantial experience in the collection industry, Six Sigma core competency and extensive industry relationships can provide you and your team a matchless perspective into your accounts receivable business or any business strategy.

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