Barlow Lyde & Gilbert (BLG) and Clyde & Co have voted to proceed with their merger plans, the firms have announced jointly.
Clydes is expected to inherit 60 out of a possible 90 BLG partners if the deal goes ahead. According to sources close to the firm, about half of those partners, most of whom are in the equity at BLG, will become salaried partners in the enlarged firm.
This is because there is some disparity between the two firms’ profitability figures, with BLG predicting an average profit per equity partner (PEP) figure of around £310,000 for the 2010-11 year while Clydes’ PEP stood at £605,000.
Clydes senior partner Michael Payton said of the deal: “There’s huge enthusiasm and we look forward to the finalisation of the agreement and proceeding towards integration.”
BLG senior partner Simon Konsta added: “The result of the votes is an exciting and very positive step forward and reflects our belief in the potential of a combination between our two firms.
“We look forward to working with Clyde & Co to establish a final agreement that meets both firms’ strategies.”
Clydes’ partners voted on the merger last night. The firm needed more than 80 per cent of the partners to vote in favour of the deal for the merger to go ahead.
At BLG, where partners voted today, the firm needed more than 75 per cent of the partnership to back the deal for plans to proceed. According to sources close to the firm, BLG has agreed lock-in terms with partners guaranteeing their commitment to the firm for the next 18 months.
Any merger will go ahead in November.
As revealed by The Lawyer on Monday, Clydes has drawn up a shopping list of the BLG partners it wants as part of the deal (23 July 2011).