Glaisyers hungry for more deals in consolidating market

LAW firm Glaisyers will seek more mergers in a consolidating legal market as it bids to grow to a £10m+ turnover concern.

This week a deal was announced with Fruhman Davies Livingstone’s, which will see Glaisyer’s turnover top £5m, and managing partner Nick Johnson says the firm’s “door is open” to other practices too.

“The FDL merger is a good opportunity and this represents an exciting time as it is the start of what we believe will be period of growth. We’re open to other acquisitions if it’s the right size firm and the right deal.

“There is a lot of consolidation and I like to think there is a place in the mid tier for us. We don’t want to be the largest firm, but we want to have a strong presence in the North West supporting our clients, who could be defined as SMEs and their families”

Mr Johnson said the firm’s ethos was around being “big enough to trust and small enough to care”.

He added: “We do see opportunites with smallish firms where the partners are looking towards retirement and are looking for a good and safe home for their clients.”

Business advisory firm Begbies Traynor, which has advised on several pre-pack legal deals, agrees that financial stress and regulatory pressures will drive further consolidation n the sector.

Manchester-based partner Joanne Wright said: ““The North West’s legal sector is currently facing increasing consolidation with mergers such as that of Glaysiers and Fruhman Davies Livingstones following this trend.

“The latest Q3 2013 Red Flag Alert analysis highlighted the difficulties facing this sector with an increasing number of legal practices within the region now facing critical or significant problems as a result of reduced fee income and winning work with little or no margin.
 
“Unfortunately, more challenges are on the way and the hike in insurance premiums, looming self-assessment payments and questions around LLP tax status are just some of the factors that could seriously impact the cash flow and funding needs of law firms.  
 
“Coupled with concerns over partner succession and structural activity, survival for many will mean looking sideways at a consolidation option and I think we can expect to see a core selection of key players sweeping up smaller rivals in the year ahead.”