Irwin Mitchell eyes merger targets
IRWIN Mitchell is on the look-out for potential merger and acquisition targets and is still considering a possible flotation, according to a senior figure at the firm.
Speaking to TheBusinessDesk.com, Niall Baker, chief executive of the firm’s business legal services division, said this week’s approval of Irwin Mitchell’s Alternative Business Structure application was vital to provide more opportunities for growth.
Asked whether Irwin Mitchell, which employs 2,000 people with 175 in Manchester, was still considering a float, Mr Baker said both an initial public offering and private equity fundraising were being considered.
“There’s potential M&A activity if the right things come along. I think ABS is the right structure for that.
“That activity could come from private equity or public markets. On an IPO, we’re looking at the market. We’ve got to be realistic about it.”
Mr Baker said the firm hadn’t ruled out straight acquisitions or mergers and was looking for opportunities.
“We are in the market for the right deal,” he added.
Earlier this week, Irwin Mitchell became the first law firm to be granted multiple ABS licences.
Under ABS, introduced as part of the Legal Services Act, law firms can change their ownership arrangements away from share-holding partnerships to structures more aligned to non-law businesses such as banking, insurance and financial services and can receive backing from external investors.
The ABS model is being touted as one of the biggest shake-ups in the legal sector for years.
Mr Baker predicted there would be further consolidation between firms following the introduction of ABS.
He added: “It’s going to be about more consolidation. I think small firms will disappear and there’ll be mergers.”
But he also said Irwin Mitchell had put steps in place to improve efficiency and client service as the sector will be “slicker” as players including supermarkets enter the sector.
“In terms of customer service we’ve got to be as good as the others, if not better.”
