LAW SOUTH EAST 43 Law firm mergers soar 65%
As the legal sector’s consolidation continues, Tommy White, partner at top 20 accountants, Wilkins Kennedy, asks: 'Is this good for business?'
The number of mergers between law firms has soared 65% in the past year; with 385 taking place in 2013, up from 234 in 2012. This staggering statistic shows that the legal sector’s push towards consolidation is continuing. Just five years ago there were only 146 mergers in the same 12-month period.
The trend indicates that firms with an appetite for acquisitions are increasingly snapping up smaller players in order to grow profitability and combat the increased competition from other providers of legal services.
The rising trend for mergers shows no signs of slowing down, as financial pressures, increased competition, and, to a perhaps lesser extent, regulatory issues are still having a major impact.
M&A, corporate finance and property work for lawyers, particularly in the south are all
recovering but are generally still below the heady days of pre-2007.
Whilst some firms need to find a ‘white knight’ quickly in order to stave off potential financial collapse, others are turning to mergers to deliver all-important economies of scale to drive competitive advantage.
Recently there has also been a trend for mergers, particularly international ones, aimed at gaining access to new sectors and services, or to achieve greater global exposure. Mergers are also a useful way for firms to diversify their business and broaden their appeal to wider markets. It wouldn’t be surprising to see national and international mergers gaining even more momentum going forward.
Examples of law firm tie-ups in the past year include:
• King & Wood Mallesons merger
with SJ to create a $1 billion global law firm
• Norton Rose merged with US giant Fulbright & Jaworski and is now known as Norton Rose Fulbright
• Leading Midlands firm Wragge & Co, which announced its merger with City firm Lawrence Graham to create Wragge Lawrence Graham & Co
• Manches joined forces with Penningtons to create Penningtons Manches.
Clearly those operating in the legal sector believe that consolidation needs to be considered an option in order to achieve future success. But is it good for business in general?
On the whole we believe it probably is. Increased competition within the professional services sector ensures firms do not rest on their laurels. More competitive fees, better client service, increased
Straight-talking solicitors reap the benefits of recovery
As confidence returns to the Thames Valley, legal firm Herrington & Carmichael’s trademark combination of jargon-busting expertise and client-centric service is paying dividends, writes Bea Longworth
In the past two years the firm has grown its turnover by more than 40%, from £3.5 million to £5m, and increased staff numbers to 90 across offices in Camberley and Wokingham. Herrington & Carmichael’s managing partner Frankie Tierney says relationships built during the recession are standing the firm in good stead.
“We supported our clients when times were hard and they had to batten down the hatches. Now those clients are feeling confident again and know they can continue to rely on us as business picks up and projects that were mothballed come back online. We pride ourselves on really listening to clients so we understand their needs, then providing the right solution in a way that’s easy to
understand and gets them where they want to be as quickly as possible.”
Ensuring all the firm’s departments contribute to its success equally is a key strategic objective for Tierney and the firm's strategy partner Yavan Brar.
“Our corporate team has done particularly well in the past few years, delivering consistent growth,” explained Tierney. “We’ve also been delighted with how the real estate department has bounced back from the recession. They do a lot of work with residential developers, a sector that’s often first in and last out when economic downturns hit, so the resurgence of this part of our business is a real indicator that recovery is here to stay.”
THE BUSINESS MAGAZINE – THAMES VALLEY – OCTOBER 2014
as well as engaged and motivated in their roles,” Tierney said. “The quality of our people means we’re very confident that Herrington & Carmichael offers expertise many clients assume they can only find in London, with the added benefits of local knowledge and contacts, not to mention the fact we don’t charge London rates.”
With its unwavering focus on delivering great results and an exceptional experience for both private and commercial clients, Herrington & Carmichael is consolidating its position as one of the region’s most respected professional service providers.
Details: Frankie Tierney 0118-9774045 frankie.tierney@herrington-
carmichael.com www.herrington-carmichael.com
Frankie Tierney
Herrington and Carmichael has recently added to its dispute resolution and real estate teams, and the firm is continuing to recruit. “We want all our staff to be as highly trained as possible,
www.businessmag.co.uk
access to specialists, as well as maintaining a local presence and local knowledge, should provide a winning combination for firms and their clients in the south who are looking to grow as the economy swings in the right direction.
Details: Tommy White 01784-435561
tommy.white@wilkinskennedy.com www.wilkinskennedy.com
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