A Liverpool legal costs specialist is merging with a Carlisle-based outfit to form a combined £3m-turnover business with a plan to expand further. Tony McDonough reports

Two legal cost firms are merging to form a combined business with anticipated annual turnover of more than £3m.

Liverpool-based KE Costs (KE) and Carlisle-headquartered Paramount Legal Costs will bring together a combined team of more than 40 people, with around 20 in Liverpool, when the merger completes in September. The new entity will be known as Peak Costs.

Paramount is the larger of the two entities with net assets, according to Companies House, of more than £650,000 with KE, which is based at the Baltic Triangle, having net assets of around £250,000.

Co-founder of Paramount, Martin Walsh, will become the majority shareholder and managing director of Peak Costs. KE majority shareholder, Kevin Fasting retains a significant shareholding in the new business. Other members of the senior management team will become shareholders.

Both offices will continue to remain open and, not only will the deal to create Peak Costs see no reduction in headcount, LBN understands it will likely lead to an expansion with the possibility of new offices opening.

It will provide a full range of costs services to law firms in legal specialisms including clinical negligence, personal injury, Court of Protection and commercial litigation.

Martin Walsh said: “It’s a cliché to say that I’m delighted to announce this deal, but it’s true nonetheless.

“The management teams at both Paramount Legal Costs and KE Costs started a conversation a little while ago about whether there was an opportunity to work together, and that initial chat has brought the businesses together.

“Both businesses have very similar values, and our plan is to continue a journey we started separately, of providing outstanding costs services to our law firm clients. Like its predecessors, Peak Costs will support lawyers by enabling them to unlock commercial value from their files.”

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Head of operations at Peak Costs, Jon Powell, added “This merger is all about growth, and expanding the number of law firms we can help. But it’s also about remembering where we are from and what we are about.

“The firms that currently work with both KE and Paramount know what to expect from us, and our approach won’t change. We think there’s a huge opportunity for Peak Costs and we are excited about what we can achieve together.

“Both Paramount Legal Costs and KE Costs have built excellent teams of both fee earners and support staff, and with that firepower behind us, we are aiming high.”

Financial advice and due diligence on the deal was provided by Tom Blandford of Sursum Advisory.