Queen with David Bowie – Under Pressure. Fantastic stuff. Or at least it was until Vanilla Ice got his hands on the bassline.
Jay Z with Alicia Keys – Empire State of Mind – one of the tracks of 2009 (although it’s also worth checking out the version with just Miss Keys on her own.)
Dire Straits & Sting – Money For Nothing. It’s brilliant. Just don’t admit it in public.
There’s no doubt that sometimes pooling resources can create something greater than the sum of the parts that makes it up. Not always (David Bowie & Mick Jagger’s ‘Dancing In The Street’ anybody?) but often working together can create something quite spectacularly good.
Morecambe & Wise.
Lennon & McCartney.
The Rat Pack.
Laurel & Hardy.
Punch & Judy.
The Chuckle Brothers.
According to a report in The Law Gazette last month (http://www.lawgazette.co.uk/news/top-firms-involved-merger-talks) the trend for firms to look at merging is showing no signs of abating since we last covered the subject in a blog last year (http://vgcharles.blogspot.com/2010/06/to-merge-or-not-to-merge.html). The 2009 figure of 75% of the Top 100 having been approached has been mirrored in 2010 according to a survey which indicated that just over 74% of firms in the Top 200 have had the same conversation in recent times.
What does seem to have changed though is the reason why these conversations have taken place. In 2009 during the immediate post-recession market many of the conversations amongst smaller firms were based upon a recognition that firms need to pool their resources to survive. Now though it is the looming spectre of Alternative Business Structures which appears to be driving practices to look at how they are structured, whether they are set-up to deal with ABSs, and if not then how they can best achieve this.
Recently our business has been involved in brokering a number of these mergers; our vast experience in the legal recruitment market lends itself very well as, just like advising a candidate, the most important aspects remain what the ‘fit’ is, understanding what each side hopes to achieve and therefore which firm(s) represent the best match for doing so.
That specialist knowledge of understanding the individual ethos and ambition of each firm, the working mentality, client base, calibre of lawyer etc is absolutely crucial in ensuring that the merger is on track for success and that the combined entity will work as a fully integrated and functional practice.
So if mergers or an acquisition is something which you are considering at the moment, then what do you need to consider?
- WHY? – what do you hope to achieve from such a move? Is it to boost turnover, to add a new service, gain a presence in a new location or is it simply economies of scale?
- WHO? – you know who you are, what kind of practice you are and the type of person who is typically successful there. Chances are that you will be looking for firms of a similar outlook and working practice, but who fits the bill?
- WHERE? – are you seeking to merge or acquire so that you are not entering a new location ‘cold’, or are you looking to maximise your local presence by going into business with a nearby rival, thus cornering a greater percentage of the market?
- HOW? – well, that’s where we come in! :-)
- WHAT? – this is perhaps something more important in the ABS market than before, but even now we are seeking firms like BLG and Clyde discussing mergers which will create a behemoth of the insurance world. What do you want the final firm to be? An international transatlantic giant or the leading high street practice in town?
These are all questions which both parties need to consider from the outset. However firms should also retain an open-minded stance; often a practice interested in merger talks may be one which doesn’t initially seem to fit the expansion plan, yet just one conversation between the parties can reveal that actually it’s a match made in heaven.
In other cases it is through having such a meeting that it can firm up in the protagonists’ minds exactly what it is they are seeking. As such we work with a number of firms who are not actively pursuing expansion of this nature, but who nonetheless wish to be made aware of any practices who are considering mergers in case this may fit with their long-term and/or opportunist strategy.
Like most things in life you have to buy a ticket to take the ride. Some talks simply won’t go anywhere, but only by talking to people in the market who can put you in touch with the right opportunities do you stand a chance of finding out if that ideal merger partner may be out there.
And remember, nothing ventured nothing gained. Not all collaborations are perfect:- consider Paul McCartney & Stevie Wonder – Ebony & Ivory. Actually, best not.
To discuss possible merger opportunities in the legal market, including in-depth conversations about the strategy and driving factors behind such a move, call one of our specialist consultants at VG Charles & Co on 0121 233 5000 / 020 7649 9094 or visit our website www.vgcharles.com
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