A New National Law Firm in the Making

by Legal Practice Intelligence

Will the newest entry into the ranks of Australia's national mid-tier law firms emerge from a new stock exchange listing, a merger of existing partnerships or a fast-growing incorporated legal practice?

Based on recent developments, it is possible that Australia's next national mid-tier firm might actually be owned by a not-for-profit membership organisation, specifically the NSW Business Chamber.

The NSW Business Chamber is the owner of Australian Business Lawyers & Advisors. "On 1 November 2011, Australian Business Lawyers & Advisors merged with the Chamber of Commerce and Industry Queensland’s legal services – CCIQ Legal Services Limited – to create a new office in Brisbane" the Chamber announced.

Why is a NSW membership organisation expanding its legal services business interstate? Is this part of a new direction or a bigger strategy?

Legal Practice Intelligence posed these questions to NSW Business Chamber CEO Stephen Cartwright. As well as being the Chamber's CEO, Mr Cartwright is also Chairman of Australian Business Lawyers & Advisors. He has had a significant history in legal practise himself having been the founding partner of law firm Fisher Cartwright Berriman - which evolved into FCB Workplace Law. 

Stephen Cartwright

Mr Cartwright explained that the Queensland law firm that became part of Australian Business Lawyers & Advisors on 1 November 2011 had been a wholly owned subsidiary of Chamber of Commerce and Industry Queensland.

The ownership shift from the Queensland Chamber to the NSW Chamber is part of NSW Business Chamber's strategy to build a national commercial infrastructure of which legal services is an important component.

Mr Cartwright told Legal Practice Intelligence that further expansion of the law firm into other states will not be done "without the agreement of the Chamber in that state."

He views such mergers as a natural development. The NSW Chamber's national commercial infrastructure initiative flows from its stronger financial position to drive and manage such activity.

The national commercial infrastructure operates under the name The Australian Business Solutions Group. It provides services to tens of thousands of member and non-member clients each year in fields such as HR, marketing, OHS, international trade, management consulting and legal services.

Membership benefits are explained on its website: 

"Australian Business Solutions Group is closely aligned with the Chamber movement in Australia and is the only professional services firm in Australia owned by a business association. All profits go directly back into the business community, through membership, events and advocacy."

"Business chamber members may be eligible to receive a discount on professional services."

NSW Business Chamber acquired Australian Business Lawyers approximately one year ago. At the time, the law firm was comprised of 5 partners and over 30 professional staff. It then stated that one of the reasons for the acquisition was “the further growth of the firm – with the financial backing and additional resources of the NSW Business Chamber.”

During the course of 2011 the law firm expanded its capabilities in commercial and property law by recruiting senior and junior lawyers specialising in these areas of law. Mr Cartwright told Legal Practice Intelligence that the firm continues to be in recruitment mode.

Even with entree to a huge potential client base, making it the envy of many other law firms, Australian Business Lawyers & Advisors has not been immune from the staff turnover challenges faced by law firms generally.  Staff departures during the last 12 months included one of the co-founders of the original Australian Business Lawyers firm.

The law firm is currently nearer in size to a boutique than a national mid-tier. However, with its marketing advantages arising from business Chambers' unique relationship with tens of thousands of potential clients, Australian Business Lawyers & Advisors is in a prime position to grow and become a significant national firm.

 28 November 2011

© 2011 Legal Practice Intelligence