BLG brand to disappear as part of Clydes merger
The Barlow Lyde & Gilbert (BLG) brand will be scrapped in favour of Clyde & Co when the firms merge in November with BLG’s partners moving onto Clydes’ lockstep structure.
Michael Payton
Around 15 per cent of BLG’s 100 partners are expected to leave the firm as part of the deal, which partners at both firms voted through last week (29 July 2011).
Clydes’ current management will continue in their positions post-merger with Michael Payton remaining as senior partner and Peter Hasson continuing as chief executive of the enlarged firm. BLG senior partner Simon Konsta, who was elected to his position in May 2008 (29 May 2008) will gain a place on the new management board along with current BLG chief executive David Jabbari, who will become chief operating officer of the new entity. A further BLG partner will also be co-opted onto the board.
The decision to adopt the Clyde & Co brand, Hasson said, was driven by the firm’s international presence.
“In the US and Middle East we’ve worked very hard to ensure that the Clydes brand is known and that is broader than just insurance so everywhere we will have the single brand,” he told The Lawyer, adding: “We’ve decided to make the tough decisions at the outset of this process.”
Jabbari added: “It reflects a professional management team coming at the merger from a practical and robust viewpoint.”
The decision on the BLG partnership, said Jabbari, was a continuation of a stated BLG strategy to refocus the firm.
During the 2009-10 financial year BLG saw the exit of several high-profile partners, including litigation chief Julian Randall, who joined Taylor Wessing along with Andrew Howell and Tim Strong.
In November last year Jabbari told The Lawyer that the departures would continue as the firm adopted a new strategy (1 November 2010).
“We’ve been restructuring over a three year period and this can be seen as a continuation of that,” he said this week. “We must also recognise the vital importance of bringing the PEP [in the two firms] into line.”
David Jabbari
At the latest year-end Cydes posted turnover of £212m, up from £192m a year earlier. Average profit per equity partner (PEP) has sat at £605,000 for the last two years (23 May 2011).
At BLG turnover rebounded during the last financial year with the firm posting a 17 per cent rise in turnover, up to £94.5m from £80.8m in 2009-10. The firm has not yet revealed its PEP figure, but it is expected to be approximately £310,000 (16 May 2011).
The firms operate on broadly similar remuneration structures, but BLG partners will be moved onto the Clydes structure with those at the top end of BLG’s equity becoming senior equity partners at Clydes.
The combined firm will have 270 partners and an international network consisting of 27 bases.
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Readers' comments (37)
AA | 7-Aug-2011 1:31 pm
All going well, the politically talented but otherwise inept beneficiaries of this takeover deal will have the career lengths they deserve while the true talent will thrive at their new firms and provide clients with great legal service in a working climate free from tyranical management outbursts and doublespeak.
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Shep | 7-Aug-2011 1:36 pm
It seems a shame to blame David Jabbari for all the recent management mistakes at BLG when at least some of the credit should go to Konsta and others. It's polite to share.
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Mikey | 7-Aug-2011 1:55 pm
Full credit to Clydes in taking out a competitor. They will have to pay the price in terms of jobs for the boys (and girls) secured as part of the sell out for a while anyhow - and they will no doubt have to pay for a few more exits on the management side and practice teams over the next year. Clydes will know that much of what they have 'bought' is not worth the money but it means less competition from old style insurance firms. Now they only have to worry about the up and coming firms with a very different culture.
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Jules | 7-Aug-2011 3:14 pm
What must the Clydes' business support directors think of the COO appointment? Just goes to show that keeping the knives sharp and political prowess wins over management merit and hard work every time. Not to worry, it won't last long - hopefully Peter has seen through the smooth talking and created a role that has limited power and shelf life ... or else Clydes may be looking for its own white knight.
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Donna T | 7-Aug-2011 3:50 pm
How many lawyers does it take to sink a law firm? More seriously, a nice little earner for the more senior BLG partners and Mr Jabbari but no doubt there will be a lot of job uncertainty for others lower down the pecking order. Also a huge distraction for keeping clients. The more agile insurance firms like Holmans and RPC will be having a field day behind the scenes picking up disaffected clients and staff.
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david thomas | 8-Aug-2011 12:33 pm
as a solicitor from the old dowgate hill joe small & [sir] denis marshall days it seems a little sad that the name and all it represented is going.
nostalgia is not what it used to be
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Anonymous | 8-Aug-2011 2:10 pm
Accountants can't run law firms ? - Clydes has been totally run by one accountant for the last 12 or so years. But Mr Jabbari has managed to climb aboard. He is younger, hungrier and better qualified than his rival - and the old regime at Clydes will be heading towards the exit. So we going to see a bit of a battle for power in the next couple of years. Only one will survive long term.
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