Alternative Business Structure (ABS) applications

Unlocking external capital and non-lawyer expertise

The introduction of the Alternative Business Structure (ABS) transformed the English and Welsh legal market. By allowing non-lawyer ownership and external investment, an ABS enables law firms to scale rapidly, acquire new technology, or reward key non-legal staff—such as Finance, IT, or HR Directors—with equity stakes.

However, the SRA’s scrutiny of ABS applications is intense. The regulator requires absolute confidence in the financial stability of the proposed entity. As the only accountancy firm working in partnership with the Law Society, Armstrong Watson provides the rigorous financial modelling and strategic business planning required to ensure your ABS application succeeds.

Building a watertight financial case

The SRA requires detailed evidence that your new ABS is financially viable and that client money will be protected. As a founding partner of Law Firm Ambition, we work directly with your management board to build a compelling submission:

• Robust Financial Forecasting: We build the mandatory three-year financial forecasts, complete with stress-tested cash flow models and profit & loss projections, proving the commercial viability of the new structure.
• Working Capital Modelling: We demonstrate to the SRA exactly how the ABS will be funded, clearly outlining lock-up management, partner capital, and the deployment of external investment.
• Business Plan Development: We help you articulate your strategic rationale, ensuring the narrative of your business plan aligns perfectly with the financial data submitted to the regulator.

Supporting external investment

If your ABS application is driven by private equity or external funding, we provide the corporate finance expertise needed to structure the deal. We assist with firm valuations, due diligence preparation, and tax structuring to ensure the incoming investment is deployed efficiently.

How long does the process take?

The whole process on average takes around six months, however, it could be longer or shorter depending on the complexities involved and SRA suitability decision.