The Solicitors Regulation Authority is continuing to supervise more than 50 firms at risk of financial collapse, after reporting a figure of 56 in March.
Talks are ongoing with 51 firms of varying sizes where intervention may be necessary, the regulator confirmed last week.
The SRA is consulting on plans to use reserves from the compensation fund to cover the cost of interventions, with a decision likely at the next board meeting on 12 June.
The regulator faces an estimated £7m overspend on intervention costs, which it forecasts could rise as high as £15m on a ‘worst-case scenario’ resulting from high-profile firm closures and more interventions this year.
The scramble to swallow up struggling personal injury firms is set to continue this week with two firms entering the market for new acquisitions.
Birmingham-based DBS Law said it would begin a six-month advertising campaign in June to attract law firms from around the country.
A spokesman for the firm confirmed it is in active negotiations with a number of PI practices about takeovers, with one likely to be confirmed as early as this week. Potential acquisitions will be firms posting around £2m annual turnover, with the deals financed by DBS Law’s reserves rather than any private equity arrangement.
The Gazette understands another unnamed personal injury firm has instructed acquisitions specialist MC Vanguard Corporate Finance to increase its market presence throughout the UK.
According to MC Vanguard, the firm has financial resources in place and is looking to integrate new personal injury cases into existing operations.
MC Vanguard is seeking out distressed businesses where a book of PI work can be purchased, ideally with between 300 and 5,000 cases per deal, although a firm acquisition may be considered.