Law firm coy over flotation reports
A FLOTATION could be back on the agenda at Irwin Mitchell after the firm brought in new advisers to “continue to assess the increased and significant opportunities” within the legal sector.
The national firm, which has a large office on Quay Street in Manchester, has considered an Initial Public Offering (IPO) previously but the change of advisers, who it declined to name, is expected to give new impetus to the ambitious plans.
A flotation was made possible by the introduction of alternative business structures (ABS) three years ago which broadened the ways in which law firms could be managed and owned.
Although the company said it had “taken no decision to introduce external investment”, the heavy marketing costs that TV advertising bring – as well as the benefits that would come from being the established market leader – make it an attractive option.
Trade magazine The Lawyer said it had seen a letter in which group non-executive chairman Glyn Barker confirmed that brokers had been appointed as the board was considering raising investment through an IPO, which could happen this year.
In a statement, the firm said: “We have corporate finance advisers who are helping us to look at a range of options for continuing to grow and strengthen our business. Indeed, we’ve been working with corporate finance advisers for several years now, and we have recently changed the advisers as we continue to assess the increased and significant opportunities in the changing legal market for a dynamic business like Irwin Mitchell.
“We’ve taken no decision to introduce external investment. We remain in a strong position financially with our existing bank facilities offering us sufficient firepower to invest further and make acquisitions.”
Last November Irwin Mitchell announced its sixth acquisition since the ABS changes, when it added Mayfair firm Berkeley Law to the group.
It also opened two regional offices in 2014 as part of its regional expansion plans in the UK – with Southampton launching in April and Cambridge opening in June – while it can fund further expansion through a £30m “accordion” facility, which was part of a £60m finance package secured last year with HSBC, Lloyds and Royal Bank of Scotland.
