advanced case studies
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advanced case studies demonstrate real-world implementation of sophisticated professional services structures, revealing success factors, regulatory challenges, and market outcomes. these precedents provide practical guidance for understanding how alternative structures perform in practice.
caveat emptor - case study analysis provides historical perspective but regulatory and market conditions continue evolving rapidly.
burford capital and pcb litigation partnership
the burford capital and pcb litigation partnership represents the first litigation funder equity investment in a law firm, creating precedent for sophisticated litigation finance structures.
transaction structure and innovation
historic milestone (june 24, 2020)1:
- burford capital acquired 32% passive equity stake in pcb litigation llp1
- combined equity investment with portfolio litigation financing arrangement
- pcb converted to alternative business structure (abs) under uk sra approval1
- first-of-its-kind dual structure combining litigation funding with law firm ownership
financial framework:
- 32% equity stake provided immediate capital infusion independent of case outcomes
- portfolio financing arrangement for future litigation matters
- capital designated specifically for firm growth and lawyer investment
- risk management and cash flow stability through diversified funding sources
regulatory compliance achievement
uk sra approval process:
- conversion from traditional partnership to abs structure under legal services act 2007
- comprehensive regulatory approval demonstrating viability of hybrid arrangements
- burford maintained passive investment status without operational control
- professional oversight preserved through pcb lawyer management
precedent establishment:
- demonstrated regulatory acceptance of litigation finance-law firm hybrids
- created framework for passive equity investment in specialized legal practices
- influenced other litigation funders to explore similar ownership structures
performance and market impact
operational outcomes:
- pcb maintained full operational independence while gaining growth capital
- enhanced financial stability enabling aggressive case selection strategies
- improved cash flow management reducing dependency on case timing
- successful integration of funding and ownership without regulatory conflict
industry influence:
- model for other litigation finance-law firm partnerships
- demonstration of sophisticated litigation finance evolution beyond pure case funding
- validation of regulatory framework accommodating innovative structures
kmpg arizona abs authorization
kmpg’s arizona abs authorization represents a significant milestone for big four accounting firms entering direct us legal practice.
historic achievement
regulatory milestone (february 2025)2:
- first big four firm authorized to practice law in the united states2
- arizona supreme court approved kmpg law us abs license
- fundamental breach of traditional barriers between accounting and legal services
- precedent for multidisciplinary practice in permissive jurisdictions
strategic positioning:
- kmpg law us operates as independently managed subsidiary of kmpg llp
- strategic alignment with kmpg tax practice while maintaining governance separation
- prohibited from serving kmpg audit clients maintaining independence requirements
- compliance with arizona code of judicial administration § 7-209
operational implementation
service delivery framework:
- technology-driven legal services leveraging kmpg technological capabilities
- legal operations consulting and managed services for corporate clients
- expansion through staffing agencies and co-counseling relationships
- focus on efficiency and cost reduction through operational optimization
regulatory compliance structure:
- designated compliance lawyer ensuring professional oversight
- separation of legal practice from accounting operations
- arizona abs program requirements including annual renewals and reporting
- ethical standards maintenance across multidisciplinary practice
competitive implications and market response
industry transformation catalyst:
- potential for other big four firms pursuing similar arizona abs structures
- influence on other states considering abs program adoption
- fundamental challenge to traditional law firm partnership model exclusivity
market positioning advantages:
- technology capital access unavailable to traditional partnership structures
- global network integration enabling comprehensive client service delivery
- operational efficiency through shared services and infrastructure
- competitive pricing through economies of scale
healthcare mso precedents
healthcare management service organizations provide sophisticated precedents for professional services alternative structures addressing corporate practice restrictions.
heartland dental comprehensive model
market leadership scale:
- largest dental support organization (dso) in the united states3
- 1,700+ dental offices across 38 states with 2,800+ supported dentists3
- 20,000+ team members providing comprehensive operational support
- demonstration of mso scalability in highly regulated professional services
structural framework:
- mso provides non-clinical administrative services maintaining compliance
- dentist ownership of professional practice with management services outsourcing
- economies of scale in technology, marketing, and operational functions
- growth capital access through private equity investment in mso entity
aspen dental operational evolution
comprehensive service network:
- rebranded from aspen dental management (december 2021)4 demonstrating operational maturity
- network supporting 1,100+ dental practices with 1,500+ clinicians4
- service delivery to 10+ million individuals showcasing scale achievement
- expanded healthcare support organization model beyond traditional dental focus
regulatory compliance challenges:
- new york attorney general enforcement action demonstrating regulatory scrutiny
- $450,000 fine for excessive control over practice finances
- independent monitor requirement for ongoing compliance oversight
- key lesson: msos must maintain boundaries between administrative support and clinical control
mso structural advantages and limitations
operational benefits demonstrated:
- economies of scale in non-clinical functions reducing individual practice costs
- compliance with corporate practice of medicine (cpom) laws across jurisdictions
- administrative consolidation while preserving professional independence requirements
- growth capital access enabling rapid expansion and technology investment
regulatory boundary management:
- clear separation between management services and professional practice decisions
- professional oversight maintained by licensed practitioners
- compliance monitoring ensuring regulatory adherence across multiple jurisdictions
- documentation requirements preserving professional independence
technology platform implementations
arizona abs entities demonstrate technology-enabled professional service delivery models through sophisticated platform integration.
legalzoom abs implementation
historic significance (october 2021)5:
- lz legal services approved for arizona abs license
- first company with abs licenses in both us and uk jurisdictions
- james peters (vp legal) leading arizona operations with comprehensive regulatory experience
- transition from attorney network model to direct employment structure
operational transformation:
- direct attorney employment vs independent contractor networks
- technology integration enabling faster service delivery and cost reduction
- scalable business model for high-volume legal services
- demonstration of technology platform viability in regulated legal practice
rocket lawyer strategic positioning
market entry strategy (september 2024):
- rocket legal professional services (rlps) approved as arizona abs entity
- subsidiary structure maintaining independence from core technology operations
- withdrawal from utah regulatory sandbox in favor of arizona abs framework
- focus on cost reduction and service accessibility through technology optimization
competitive advantages achieved:
- technology integration with legal services providing operational efficiency
- direct attorney relationships rather than referral network dependencies
- cost reduction through automation and process optimization
- scalable service delivery model enabling growth without proportional cost increases
grant thornton private equity partnership
grant thornton’s private equity partnership demonstrates sophisticated accounting firm alternative structures enabling growth capital access.
investment structure innovation (may 2024)
transaction framework:
- new mountain capital acquired 60% stake in us operations6
- cdpq and oa private capital minority investments providing additional capital6
- $50 billion assets under management backing strategic initiatives6
- alternative practice structure (aps) implementation ensuring regulatory compliance
operational separation strategy:
- grant thornton llp: licensed cpa firm for attest services
- grant thornton advisors llc: business advisory and non-attest services
- separation compliance with aicpa independence standards
- strategic acquisition focus leveraging private equity capital access
performance outcomes and market impact
growth acceleration achievements:
- enhanced acquisition capabilities through private equity financial backing
- expanded service offerings beyond traditional audit and tax practice
- international expansion including grant thornton ireland combination
- technology and talent investment enabling competitive positioning against big four
market positioning transformation:
- first major us accounting firm with significant private equity investment
- demonstration of alternative structure viability in accounting profession
- precedent for private equity investment in professional services partnerships
- competitive response model for other major accounting firms
regulatory innovation examples
alvarez & marsal broadfield law firm
innovative mso structure (2024):
- amls (alvarez & marsal legal services) providing comprehensive management services
- bdb pitmans partnership for broadfield law firm creation
- mso model enabling international law firm expansion without ownership transfer
- mid-market private capital and corporate focus maintaining specialization
service integration framework:
- technology and back-office services provision
- strategic growth advice and fundraising assistance
- document management and legal operations optimization
- talent and firm acquisition support through operational expertise
arizona abs ecosystem development
comprehensive market validation:
- 600% growth from 19 to 136+ entities (2022-2025)7 demonstrating market demand
- comprehensive practice area coverage across consumer and business services
- technology-enabled service delivery models proving competitive viability
- multi-disciplinary team integration maintaining professional oversight
failed implementations and lessons learned
understanding failures provides critical guidance for successful alternative structure implementation.
slater and gordon uk expansion failure
ambitious expansion strategy collapse:
- australian publicly-traded law firm’s aggressive uk acquisition program
- expensive quindell professional services division purchase
- share price collapse due to accounting investigations and integration difficulties
- lesson: rapid expansion without proper integration creates unsustainable operational risk
compliance failure examples
regulatory enforcement outcomes:
- crawford & company abs fined for anti-money laundering compliance failures
- virgo consultancy services shut down for multiple compliance violations
- lesson: enhanced compliance requirements demand dedicated resources and expertise
key failure factors identified:
- over-aggressive expansion strategies without operational integration
- inadequate compliance and risk management frameworks
- cultural resistance within traditional professional service organizations
- insufficient understanding of regulatory requirements across jurisdictions
success factors and best practices
regulatory compliance excellence
proactive regulatory engagement:
- comprehensive understanding of regulatory requirements across jurisdictions
- dedicated compliance resources and professional oversight
- clear separation of regulated and unregulated activities
- ongoing monitoring and adaptation to regulatory evolution
cultural integration management
professional service culture preservation:
- respect for professional values and client service standards
- gradual implementation of structural changes minimizing disruption
- maintenance of client service quality throughout transition processes
- professional development and retention programs
strategic capital deployment
technology and operational investment:
- technology infrastructure enabling competitive service delivery
- talent acquisition and development programs
- geographic and service line expansion strategies
- performance monitoring and optimization systems
market evolution and competitive responses
traditional firm adaptations
organizational modernization:
- increased corporatization and professional management adoption
- technology investment enabling client service delivery enhancement
- specialization focus on high-value, relationship-dependent services
- strategic partnerships creating alternative collaboration models
regulatory framework evolution
expanding permissive jurisdictions:
- arizona: comprehensive abs program with continued growth
- utah: regulatory sandbox experience informing permanent frameworks
- puerto rico: 49% non-lawyer ownership (effective january 2026)
- potential federal framework consideration for national harmonization
advanced case studies demonstrate that professional services alternative structures can achieve significant operational and financial benefits while maintaining regulatory compliance and professional standards. success requires sophisticated understanding of regulatory requirements, cultural sensitivity, and strategic capital deployment focused on long-term value creation rather than short-term profit optimization.