Cardiff law firm first to commit to flotation

A small Cardiff law firm has been the first to explicitly state that it will float on the stock exchange.

Ergo ;Solicitors ;has merged with Mansfield Fellowes Solicitors as a precursor to a flotation following the implementation of the Legal Services Act (LSA).

Ergo ;chief ;executive Michael Burne, a former Allen & Overy lawyer, said the firm would become publicly listed “as soon as we’re hitting a profit, which puts us in a strong position”.

Ergo has converted to a limited company to give staff the opportunity to take equity stakes in the firm upon reaching five years’ PQE.

Burne said this was preferable to a traditional partnership law firm model, as it would give lawyers greater opportunity to develop careers as business managers.

“The long-term aim is to create a new style of law firm, which would create shareholder value and is a commercially branded firm built towards serving the needs of the customer,” he said.

Burne added that much has been made of how the LSA will impact on private consumers, but Ergo plans to build up a client base in the small to medium-sized enterprise market.