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Mergers and Acquisitions set to increase as we move into 2013
In the wake of the Legal Service Act many smaller high street firms have floundered given the rapid pace of change in the legal world. The amount of mergers and acquisitions has driven further consolidation in a fragmented legal sector and the Yorkshire & North East region has seen a number of significant changes. This week we’ve had the news that Dickinson Dees has opened talks with Bond Pearce and Lupton Fawcett is in discussions with Yorkshire rival Lee & Priestley.
The national law firm brands we see emerging, means that the smaller high street practices need to work a lot harder to compete. The name of the game seems to be to enter the Top 50 and create a stronger, more diverse client base and in doing so provide services for large corporates, national organisations and high net worth individuals. These mergers will give many niche firms a platform to serve existing clients with a range of services.
If the merger with Dickinson Dees and Bond Pearce goes ahead, the firm would have 1,200 staff and a turn over of £95m across 8 offices nationally, putting in them in the Top 30. Statistically law firm mergers nationally are up 31% year on year since 2009. Many believe this is happening for “defensive” reasons rather than expansionary strategies, and larger firms are looking to cut costs and reduce risks to protect profits. Mergers will also help alleviate the pressures of high commercial property costs.
Many Lawyers will favour these changes, and many will not. Either way, the changes in the legal sector means that new national brands will form and we will continue to see significant changes as we move into 2013.
If you would like to discuss any of the above article please contact Catherine Henry. If you are looking for a new opportunity please visit our legal job search page to view all our latest legal vacancies.