BLG and Clydes eye UK top 10 slot with potential merger
Barlow Lyde & Gilbert (BLG) is planning to merge with fellow insurance firm Clyde & Co, in a deal that would propel the combined entity into the UK top 10 by turnover.
David Jabbari
It is understood that the two firms have been in talks about a possible tie-up for several months.
Clydes chief executive Peter Hasson said the tie-up deserves “serious consideration” given the impact it would have in the insurance market.
BLG chief executive David Jabbari said in a statement that the firm had been exploring a number of different merger options, adding that a tie-up with Clydes has “obvious potential”.
BLG has positioning itself for merger for the last year and has seen a number of exits from its partnership. That said, its headcount has not declined because last year it acquired the Manchester office of now-defunct firm Halliwells.
Peter Hasson
For the 2010-11 financial year the firm posted a 17 per cent rise in turnover, up to £94.5m from £80.8m in 2009-10 (16 May 2011).
Clydes, meanwhile, broke through the £200m turnover barrier for 2010-11, posting revenues of £212m up from £192m a year earlier (23 May 2011).
There is some disparity between the two firms’ profitability figures, with BLG predicting an average profit per equity partner (PEP) figure of around £300,000 for th 2010-11 year while Clydes’ PEP for 2009-10 was £605,000.
Any merger would send shockwaves through the insurance legal market, leaving firms such as Kennedys, which posted revenues of £88.2m 2009-10, and Holman Fenwick Willan, with revenues of £112.5m in 2010-11, in the merged entity’s wake.
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Readers' comments (27)
AOG | 4-Jun-2011 2:33 pm
The problems go beyond conflicts and PEP disparity. Yes firms like RPC and HFW should benefit from the conflicts fall out but, just as importantly, is this merger in the clients' best interest? Gone are the days when size meant everything and clients want first class service for reasonable and predictable fee levels. The smaller and more agile firms are better placed to deliver this from what I've experienced.
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Avril | 4-Jun-2011 2:41 pm
Most will see this as last chance for Barlows. Having rescued Halliwell partners and staff they now find themselves needing a rescue package. Some clients will welcome the stability as a welcome change from BLG's recent rocky road but a fair few will review their options and look to other insurance specialists - firms that can focus on client issues rather than internal problems.
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Anonymous | 5-Jun-2011 8:43 pm
whether the deal goes ahead or not, it's not looking good for the majority of BLG staff.
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Bob123 | 6-Jun-2011 7:54 am
If ever a law firm merger needed to be scrutinised by the competition authorities, this is one.
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Anonymous | 6-Jun-2011 4:00 pm
Last chance BLG. Glad to have jumped ship before it completely submerged. I suppose, given the BLG crisis and their need for help - departures read like an airport lounge - Clydes will be well and truly at the helm. Couldn't happen to a nicer bunch of people!
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Lady in House | 8-Jun-2011 4:55 pm
I like Simon Konsta very much...and wonder if his heart is really in this or he's a turkey voting for the proverbial? That said BLG needs sorting and a merger with Clyde may effect just that. Interesting to see who lucks in to Senior Partner and Managing Partner roles, and how the inevitable fall out will be managed. alea jacta est!
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Anon | 9-Jun-2011 12:07 pm
'RPC, Kennedys and Holmans all look dead in the water
Absolute rubbish statement when it comes to Kennedys. Massive growth 3 years in a row, a number of key lateral hires and another office and 2 associated offices this week alone.
Kennedys will be a Top 20 firm within the next 2 years.
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