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Dawsons and Penningtons set for imminent merger

@ Anonymous 3.27pm The costs aspect will be a tricky one all the same. If Dawsons as a whole came over, then that would be a lot of staff added into Pennington's payroll/office space. Associates too would be a challenge too. The other issue is leverage levels. Dawsons seems to be rather tight on the equity - hence the high PEP (for its size) - when integrated into the larger Penningtons - which appears to be slightly (but only a little) more democratic, will this work? Would Dawsons partners then no longer appear to be so profitable? This deal could work - but it could also go very wrong, Also, if a few more client-holding Dawsons partners walk, Penningtons coud just inherit Dawson's costs and staff (and law suits) and little else. Think before you merge guys.

14-Mar-2011

4:25 pm