More and more firms are expanding into other regions to increase turnover and offer clients new services. But, as Cameron Timmis explains, there are do's and don'ts to follow.

This week, 12 months after launching a second office in Leeds, Newcastle-based Watson Burton announced it would be opening an outpost in London. Last month, East Midlands-based Freeth Cartwright launched its first office outside the region, in Manchester. And earlier this year, south-west firm Clarke Willmott acquired the Birmingham arm of regional practice Heatons, two years after its first foray into the Midlands market.


It is not just in recent months, but over the past few years, that more and more regional firms have been making incursions into legal markets beyond their home turf. Sometimes part of a well-crafted strategy, other times driven by sheer opportunism, the reasons for opening a new office can vary. Whatever the rationale, there are key lessons to be learned.


Five years ago, after a conducting a strategic review of its business, Bournemouth-based Lester Aldridge opened a second office in Southampton. Not able to find a suitable firm to merge with in the town, it recruited two teams of lawyers - in marine and banking litigation - acquired premises of 4,000 square feet, and set a goal for the office to break even within three years. It now has 31 lawyers based in the city, nearly half the number at its Bournemouth headquarters.


Managing partner Roger Woolley says opening an office in Southampton was essential to support the firm's strategy to be a regional player in the 'central southern' area (Dorset, Hampshire and Wiltshire.) 'Because our base was Bournemouth, we were being overlooked by clients and recruits. Bournemouth has a sleepy image. We had also seen banks and the bigger accountancy firms moving to Southampton. The issue for us was either to continue as a genuine regional player, or stay in Bournemouth and become a large local firm.'


The opening of Lester Aldridge's third office in Milton Keynes, in May 2004, was, concedes Mr Woolley, 'slightly opportunistic'. The firm was approached by a team of lawyers based in the city specialising in asset finance, a key strength of the firm. 'They didn't want to move geographically but we were [still] interested.' By opening in Milton Keynes, the firm was able to 'cement its strategy as a national player' in asset finance, says Mr Woolley.


The decision to open a fourth office in London, also in 2004, was driven by two factors: to build expertise in another of the firm's niche areas - retail property - and to enhance its private client practice. 'London has a significant kudos for private client work,' says Mr Woolley. Having acquired part of the practice of Park Nelson, the firm now has 16 lawyers based in the capital.


Like Lester Aldridge, Clarke Willmott's ambition was also thwarted by its location - in this case Somerset, where at one time it had 17 offices dotted around the county. After a major expansion of its Bristol office, which became the firm's new headquarters (previously in Taunton) and opening an office in Southampton (in 2002, it merged with Ensor Byfield), in 2004 the firm decided to push further afield into Birmingham, acquiring local firm Amery Parkes.


'It was always our strategy to move out of the south-west into other regions,' says partner David Powell, who led the launch of the firm's Birmingham office. 'Birmingham was the number one choice because our house-building clients were telling us they wanted to be there, and if we went there we could get more work... a lot of house-builders have head offices in and around the midlands.'


Initially focused on property work - in 2005, the firm also acquired the Birmingham property practice Vernon & Shakespeare - it has relocated employment and litigation partners to the Birmingham office. It recently acquired the Birmingham arm of Stoke-based practice Heatons, consisting of three partners and eight lawyers - a deal described by Mr Powell as 'one of those occasions when an opportunity arose... and we went for it'. Now 60 lawyers-strong in the city, Mr Powell says the firm 'fully expects' Birmingham to be its largest office 'within five years'.


Another Birmingham newcomer is Shoosmiths. In 2003, the firm opened an office in the city after hiring a nine-strong team from Lee Crowder (later acquired by Cobbetts), led by partner Joel Kordan. The firm was keen to make its mark in a major legal centre - reputedly the UK's second largest - to cement its reputation as a national, as opposed to purely regional practice, Mr Kordan explains. Although it had a wide regional spread - with offices in Basingstoke, Milton Keynes, Northampton, Nottingham, Reading and Solent - before entering Birmingham, Shoosmiths was not in a 'major conurbation', he says. 'Birmingham was a natural addition to that. We had lots of clients who said, "why don't you have an office in Birmingham?" and the client base here was relatively big.' From an initial property focus, today the office is 'just about getting to full service' says Mr Kordan, and now boasts 75 staff.


In June last year, after several years of strong growth, Newcastle firm Watson Burton also decided it was time to spread its wings and opened an office in Leeds. 'What we wanted to do was raise our profile, increase our turnover, increase services to new clients and fill gaps in our [existing] service,' explains business development director John Duns. Despite being one of the country's largest and most competitive legal market-places, the firm saw an opportunity to attract clients by offering a mixture of competitive rates - made possible because of a lower cost base in Newcastle - and national expertise. In its first year, the office has grown to ten partners and 40 staff, winning several plaudits along the way.


Watson Burton's new office in London will focus on construction and engineering, and professional indemnity work. 'Leeds has worked, which has given us the confidence to think another office can work,' says Mr Duns.


Cameron Timmis is a freelance journalist





Having identified an opportunity to open an office in a new region, how should law firms go about it? Here are some tips from those who have already made the move:


Hire local people. Local knowledge is critical when opening an office in a different region, so most firms either acquire or merge with an existing practice, or recruit from a local firm when launching a new office. 'It would be highly unusual and unlikely that we would go into any city cold,' says Clarke Willmott partner David Powell. 'You need people who understand the local market and who are well known.' Shoosmiths' Joel Kordan concurs: 'Our main strategy was to recruit local people. Others haven't done that. But if you parachute someone in, you don't get the local feel.'


Be 'famous for something'. Whether you plan to create a full-service office, or build a niche practice, it is important to have a solid foundation in at least one practice area, advises Mr Kordan: 'The second strand of our strategy was to do one particular area... we wanted to do property, because that's what I did - not to be all things to all men.'


Make a splash. As a new entrant in a market-place, it is imperative to make your arrival known. After opening in Leeds, Watson Burton embarked on an intensive marketing campaign, including a number of high-profile dinners with potential clients and even unfurling a 100-foot banner outside its offices, opposite Leeds railway station. This was accompanied by a major recruitment campaign.


Check transport links. In 2004, Stockport-based firm Gorvins decided to open in Milton Keynes. 'We had an existing client base that we were struggling to service from Stockport,' explains managing partner Lorraine Lockie. 'We were looking for somewhere in the south-east where we could get a base. Milton Keynes has the most fantastic transport network... it's perfect from a strategic position. You can get from Stockport to Milton Keynes in an hour and 35 minutes - I go down on a weekly basis.'


Choose good premises. 'If you want to attract good staff, you need good premises,' advises Ms Lockie. 'In Milton Keynes, there was fantastic availability of good-quality office space. That meant we could attract staff - and clients.' Shoosmiths opened its Birmingham office in Colmore Row, the city's premier legal address. 'We wanted to be on the doorstep of the major players. Other firms went to Edgbaston and were tucked away,' says Mr Kordan. 'We wanted something high profile to make an immediate impact.'


Integrate the new office. A key challenge for law firms is integrating a new office with the existing practice. 'Quite small things can spark jealousies between offices,' warns Lester Aldridge managing partner Roger Woolley, who says the firm adopted a cross-office management structure to stop individual offices competing against each other. He recommends 'focusing very hard on integration and choosing people who will fit into the existing culture'. And, he says: 'Don't underestimate the management time it will take for your existing partners to make that integration work.'