Herbert Smith slashes equity to attain magic profit figure By The Lawyer 12 December 2011 00:00 17 December 2015 14:01 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 12 December 2011 at 10:02 A merger with Freehills would be a huge step forward if they can pull it off. Not so sure about a slash and burn redundancy programme though, this is a firm which needs to boost revenues and address strategic weaknesses, not engage in that type of divisive and distracting process. Reply Link RayJay Johnson 12 December 2011 at 11:02 Herbies has spent too long trying to be a Slaughter & may. Freehills is a good fit though and they’ve got a decent litigation outfit. Reply Link Anonymous 12 December 2011 at 12:47 Could it possibly be that Herbies’ management have realised after 6 long months that it doesn’t matter how Blue the Sky is, sometimes you do need those clouds to come in and deliver the odd thunderbolt, rather than promise the same old drizzle. Best, Sian Lloyd Reply Link Anonymous 13 December 2011 at 08:18 Freeweilers > Herb Hills Reply Link j 13 December 2011 at 09:17 “Blue Sky” = get rid of 15 partners to keep profit up… truly revolutionary, well done Herbies. Reply Link Anonymous 13 December 2011 at 11:30 J – at least it’s likely work. Up here in the North East, one of our biggest firms chose to respond to poor financial results by slashing its assistant numbers. After wielding the axe, the firm’s largest department had three times more partners than assistants. Did profits go up? No. The firm kept slipping down the rankings. At least if they had the business understanding to apply the Herbert Smith model, the PEP would have started to make recover. Reply Link j 13 December 2011 at 12:17 You can only slash so far – as your NE firm demonstrates. Tthis is a paper over the cracks exercise… it’s hardly blue sky innovation! Real profit has to be driven from top line growth, which means taking market share off competitors, effectively more work from existing clients and new work from new clients. That’s where the ‘blue sky’ thinking should be aimed. Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.