When funding leader Burford Capital took a long look at the ways legal and finance teams manage legal assets for their companies, they learned a lot. Most vitally, there are three things companies can do to make better use of their legal assets.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
When funding leader Burford Capital took a long look at the ways legal and finance teams manage legal assets for their companies, they learned a lot. Most vitally, there are three things companies can do to make better use of their legal assets.
Burford Capital details that a strong first step is to develop actionable targets for the legal department. Too many companies aren’t making use of their legal assets, which can be used to enhance liquidity and financial stability. Burford, however, believes strongly in this method, and is able to partner companies with experts that can help asses current legal assets and prioritize which should be pursued.
Timing is of the essence in legal cases and financial planning. Monetizing claims can allow businesses to predict and control when money comes in, so budgeting is more stable and effective. Duration risk is a real problem, but can be circumvented with monetization.
Roughly half of financial officers stated that they did not pursue judgements in 2020 due to cost. Failing to enforce a judgement because of cost might make sense, unless the option exists to shift costs and risks in order to enforce worthwhile claims.
