Pure Legal Costs Consultants, the firm set up by former Compass Costs founder Phil Hodgkinson, has made its first acquisition by bringing on board York firm Connect Costs for a “six-figure sum”.
The deal brings 13 new staff to Pure, although the current management team will remain in place, headed by Jon-Paul Burnett.
Mr Hodgkinson said: “Connect Costs have a fantastic and hugely experienced team of costs draftsmen, who specialise in clinical negligence, catastrophic injury, high-value commercial litigation and multi-claimant product liability cases.
“These are all areas which require specific expertise, and as our incoming work volumes in these areas continue to rise, it was imperative that we increased our skills set and capacity to take work.”
He added that he had learnt from past mistakes: “Historically costs firms provide a good service for a few months, but fail to assess the size of their talent pool, therefore not recognising the tipping point at which the service they provide begins to suffer, which then results in loss of quality, poor service and poor results… We are fast approaching our tipping point.”
Around 150 people currently work across the whole Pure Legal group – which late last year made its first law firm acquisition by buying York firm Pryers – and Mr Hodgkinson said two more acquisitions in the pipeline should take the headcount to 250 in a couple of months’ time.
There are signs of the costs market slowly consolidating and the bigger practices looking to expand, with Burcher Jennings recently opening offices in Manchester – in a deal with Kings Legal Costings – and Truro.