Legaltech Subsidiary Commercialisation
Top 50 UK Law Firm
Target Operating Model design and subsidiary setup proposal for a leading law firm commercialising a proprietary legaltech platform, requiring separation from the LLP structure and independent business operations.
The Challenge
A top 50 UK law firm has successfully developed a proprietary document intelligence platform and is preparing for live client pilots. However, they face critical structural challenges: the legaltech product cannot sit within the LLP structure as it is not providing regulated legal services, risking regulatory entanglement and operational inefficiencies. The partnership needs to separate legal and technology business models, as running a SaaS company requires different capabilities, governance, and metrics than a law firm. There is operational uncertainty around how the new entity will handle critical functions like Finance, HR, IT, and Risk, with no agreed framework for cost and service sharing. The firm wants to build a structure that will allow the platform to scale as a standalone business with potential for external capital, while protecting the LLP from risk.
The Solution
We delivered a comprehensive Target Operating Model (TOM) design and subsidiary setup to address the commercialisation challenges. We mapped every key business function for the new technology entity, clarifying which systems it would own versus procure from the LLP. We designed a complete Shared Services Framework defining responsibilities, cost allocations, and service levels between the entities. Our engagement ensured regulatory compliance while protecting the LLP's risk position, and positioned the technology platform as a distinct software business with its own identity and sales channels. The TOM was built with flexibility for independent scaling, specialist talent acquisition, and future external investment or capital events.
Key Technologies
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