Claims firm looks to succession with move to employee ownership

High-volume claims firm Bott and Co has joined the growing number of firms moving to employee ownership as it sets in motion succession plans.

The north-west firm said selling the business to an employee ownership trust should help protect the independence, culture and long-term future of the business.

Founded 25 years ago, Bott and Co has carved out a specialism in running low-value consumer claims in areas such as motor finance and personal injury. The firm is probably best known for its handling of flight delay claims after pursuing cases in this field all the way to the Court of Appeal.

Running such cases on low margins requires a high degree of technology, which has only increased in the last 10 years with the emergence of the RTA claims portal.

The firm says its business model requires cases to be handled consistently and at scale, but stresses that this does not mean technology is treated as a replacement for its people.

Moving to employee ownership is a way of demonstrating this, as founders Paul Hinchliffe, David Bott and Gary Froggatt implement a wider succession plan. Over the next two to three years, they will gradually step back from the day-to-day running of the firm and hand over responsibility to an internal management team.

Managing director Paul Hinchliffe said: ‘Employee ownership is the right ownership model for us because it recognises the contribution of the people in the business and gives them a meaningful stake in its future. We have great confidence in the quality and depth of the team at Bott and Co. The firm has a strong group of leaders already in place and a wider team of excellent people across the business. They understand our values, the work that we do, our clients and partners, our culture and the responsibility that comes with taking the firm forward.’

According to the firm’s most recently published accounts, covering the full 2024 year, it employed 120 people of whom 35 were fee-earners. Froggatt said staff numbers had increased during the year but were set to stabilise, with the firm also increasing its use of an overseas work provider where labour was easier to access, more flexible and more cost-effective.

Pre-tax profit had more than doubled to £3.4m, while turnover had increased by 37% to £12.8m. The firm had net assets of £6.6m, including cash reserves which had almost doubled to £2.5m.

Since south-west firm Stephens Scown became the first law firm to convert to employee ownership in 2016, a steady stream of others have followed, including Yorkshire-based Ison Harrison, Oxford firm Hedges Law and Manchester firm Myerson Solicitors.