Comment: The air of unreality – can the big deal deliver for Ashurst?

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‘Historically, what killed Ashurst’s mergers has been apathy. Latham, Fried Frank, Clifford Chance – people were apathetic.’ So recalls one former veteran of the City firm.

Ashurst has finally voted on a transformative merger with its Australian partner. But even two years since the firm agreed a formal alliance with big six Australian outfit Blake Dawson, the idea of Ashurst going through with the tie-up still seems odd, unreal even, though this timeframe was always set out and the Australian practice immediately took the name of its City suitor. Continue reading “Comment: The air of unreality – can the big deal deliver for Ashurst?”

Consolidation watch: Dentons and McKenna Long in merger talks

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Dentons and McKenna Long & Aldridge confirmed late on Monday (30 September) that they are in merger talks to create a firm with more than 3,100 lawyers around the world.

The firms are reported to be aiming to complete the deal by 1 January 2014 and in response Dentons issued the following statement to the US media:

‘Since creating Dentons earlier this year, we have been very clear in our determination to always deepen our capabilities to serve clients in the U.S. and around the world.

‘This has included discussions with firms and lawyers for whom we have great respect and share common goals. Continue reading “Consolidation watch: Dentons and McKenna Long in merger talks”

The air of unreality – can the big deal deliver for Ashurst?

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‘Historically, what killed Ashurst’s mergers has been apathy. Latham, Fried Frank, Clifford Chance – people were apathetic.’ So recalls one former veteran of the City firm.

As Legal Business goes to press Ashurst is finally about to vote on a transformative merger with its Australian partner. But even two years since the firm agreed a formal alliance with big six Australian outfit Blake Dawson, the idea of Ashurst going through with the tie-up still seems odd, unreal even, though this timeframe was always set out and the Australian practice immediately took the name of its City suitor.
Continue reading “The air of unreality – can the big deal deliver for Ashurst?”

Ashurst closes in on Australian tie-up and leadership election

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As Ashurst dots the Is and crosses the Ts on its merger with Australian top-tier firm Blake Dawson, a number of partners report an internal mood of resignation, despite a two-year courtship that has avoided significant tension or fallout.

As Legal Business went to press, both firms were to vote on full financial integration following the 2011 deal that aligned the pair ahead of this year’s vote. The merger will create a top 50 global law firm with revenues of well over £500m. Continue reading “Ashurst closes in on Australian tie-up and leadership election”

Consolidation in the second 50 – Manches and Penningtons confirm talks

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From within the over-crowded space that is the lower of half of the LB100, beleaguered 139-lawyer Manches has emerged as being engaged in advanced merger talks with private client firm Penningtons to create a £60m firm with over 300 lawyers.

Manches was earmarked as a firm in need of a merger in this year’s LB100 analysis, after turning out one of the worst performances of the group – in notable contrast with other firms focussed on the burgeoning private client sector – with revenues down by 13% to £26.3m, shifting the firm down 11 places to 93, its lowest rank ever in the table.

Continue reading “Consolidation in the second 50 – Manches and Penningtons confirm talks”

Further PI shake up appears imminent as Pannone votes on Slater & Gordon part acquisition

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Acquisitive Slater & Gordon looks set to acquire the personal injury practice of Manchester-based Pannone as sources close to the firm say it will vote next week in what is tipped to be a done deal.

The Australian Stock Exchange (ASX) listed firm, which last month announced its acquisition of Manchester-based personal injury firm Fentons, is understood to have been in talks with Pannone for several months.

Continue reading “Further PI shake up appears imminent as Pannone votes on Slater & Gordon part acquisition”

Analysis: upheaval in Scots legal market continues as Kennedys takes over Simpson & Marwick

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Insurance specialist Kennedys is the latest in line of large English firms conducting raids north of the border over the last year-and-half, sealing a merger with Scotland’s Simpson & Marwick after over a year of negotiations.

The 220-partner firm will be initially be known as Kennedys worldwide and Kennedys Simpson & Marwick in Scotland and is the most significant Anglo-Scottish tie-up since McGrigors was acquired by Pinsent Masons in May 2012.

Continue reading “Analysis: upheaval in Scots legal market continues as Kennedys takes over Simpson & Marwick”

Merger frenzy hikes LB100 income but growth masks another tough year

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Lawyer count passes 60,000 but profits fall at top UK firms

The latest Legal Business 100 results show the total revenue of the UK’s top 100 law firms has topped £19bn for the first time, while the number of lawyers across those firms has passed the 60,000 mark, also a first. However, this top-line growth is largely the result of another year of fervent merger activity, masking the fact that on a granular level many firms are struggling to achieve revenue and profit growth.

Total revenue for the LB100 for 2012/13 is £19.1bn, an increase of 8%, while total lawyer headcount swelled 10% to 61,299. However, average revenue per lawyer (RPL) is down 2% to £312,000, while profit per lawyer (PPL) and profits per equity partner (PEP) are down 2% and 4% to £95,000 and £622,000 respectively.

The primary cause for this year’s drop in RPL and PPL is the swathe of mergers over the past year, particularly among firms in the top 25.

Continue reading “Merger frenzy hikes LB100 income but growth masks another tough year”

SJ Berwin’s high stakes tie-up with KWM dares to bring a new equation to global law

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David Stevenson and Alex Novarese assess SJ Berwin’s audacious Asia-Pacific tie-up and ask if the union can truly propel the firm into the global premier league

‘This isn’t about doing anything with our backs against the wall,’ says Jonathan Blake, the former senior partner of SJ Berwin, and one of the architects of his 165-partner firm’s impending tie-up with King & Wood Mallesons (KWM).

Despite some well publicised reverses in recent years for the mid-pack City player, Blake’s comment is undoubtedly true. But as to what the deal that goes live on 1 November does signify, well, opinion is sharply and starkly divided. Continue reading “SJ Berwin’s high stakes tie-up with KWM dares to bring a new equation to global law”

Keeping up with Kinsella: Slater & Gordon’s slowly but very surely approach to mergers set to continue

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If you had reached the impression that Slater & Gordon’s acquisitive streak had come to a natural pause, if only for breath, that impression would be wrong.

Having last week officially declared it is to acquire leading UK claimant personal injury firm Fentons, its fourth buyout in two years, chief executive Neil Kinsella (pictured) tells Legal Business that the ASX-listed group has no intention of stopping any time soon.

‘We continue to look at acquisitions that might make sense strategically –without rushing,’ he explains. ‘We look at who is right for us [and consider whether] it fixes the geographical gap. It’s not just about personal injury either, it’s [also] about consumer legal services. We’re pretty optimistic. We’ll continue to grow.’ Continue reading “Keeping up with Kinsella: Slater & Gordon’s slowly but very surely approach to mergers set to continue”