Why the Legal Services Division is of interest to other companies.
1.Largest Personal Injury Legal Firm in the UK.
2. Largest publicly listed legal firm in the world.
3. Largest and most profitable division within the Quindell Group.
4. Earns revenue by processing personal injury claims.
5. Claims are composed primarily of Road Traffic Accident cases and Hearing Loss or Industrial Deafness cases.
6. Road Traffic Accident cases are typically worth £2,000-£2,500 each.
7.Hearing loss cases are worth c.£9,000 each.
8. Typically Road Traffic Accident cases settled within the Ministry of Justice claims portal. Benefit is no dispute over liability therefore quicker cash collection as cases are settled more quickly. Downside is profitability lower as caps are in place limiting fees.
9. Hearing loss cases are normally settled outside the Ministry of Justice claims portal. Benefit is more profitable as no limit to the level of fee that can be charged. Downside is a longer cash collection cycle.
10. Quindell’s strategy is to increase the percentage of cases progressed outside the Ministry of Justice claims portal to 60%. This being mainly hearing loss cases worth c£9000 each.
Based on the above it is easy to see why Quindell are a target for Slater and Gordon or anybody else with ambitious growth aspirations in this sector as potential exists to:
a) Increase the mix of work in favour of cases falling outside the Ministry of Justice claims portal thereby increasing revenue to c£9000 per case rather than £2000 – £2500 per case
b) Increasing number of claims cases thereby increasing revenue.
c) Make efficiency savings due to increased scale.