Pinsent’s Lowson on tough times for the legal sector
THE West Midlands legal sector has experienced a major upheaval in the past few months with business failures and mergers. Duncan Tift talks to Greg Lowson, head of office at Pinsent Masons in Birmingham to hear his perspective on events.
What with the imminent break-up of Halliwells and the big merger between Shakespeare Putsman and Needham & James, these are interesting times for the legal profession.
Firms cannot be blamed be blamed for keeping one eye over their shoulder and wonder ‘What next?’
However, the uncertainty only serves to underline that even the previously healthy legal sector is not immune from market forces.
The decline in business activity, a dramatic reduction in M&As and the slump in the commercial property sector have caused a lot a grief to both the legal and financial sectors. Once mutually compatible, both have been forced to re-examine their business models to ensure they are fit for purpose.
Turnover down at Wragges and Martineau: click here
The decline in the economy has also forced many firms to look elsewhere in order to secure work.
Pinsent Masons as with other firms has seen a drop in revenue. However, its latest results show a 32% rise in the average profit per equity partner.
Head of Birmingham office Greg Lowson has some interesting theories on the situation and believes that the tough times are likely to remain for some time.
“Things are improving slowly but it’s going to be another 12 months at least before we return to the levels of activity we show two years ago,” he said.
His firm has recently advised on some major infrastructure projects in and around Birmingham such as the redevelopment of New Street Station, a financing agreement for Birmingham International Airport and the new stand at Edgbaston cricket ground.
However, it is outside the region where major growth opportunities exist. But first, the region has to persuade institutions in the South East that it can do the business for them.
“Things are competitive but we can complete the work just as well as firms in London and at two-thirds the cost,” he says.
Listen to the interview in full by clicking here
