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Irwin Mitchell: we’ll float and take on the mid-tier

How anyone can say it's a good idea because Investment Banks floated is beyond me... Investment banks need capital to fund their activities, outside of enticing in new talent (which is all law firms will be able to do with any funds raised). I agree it may work for very low end commoditised work, but anything that relies on the talent of the lawyers dealing with these issues, will not benefit. The value of any law firm is in its lawyers, outside of human capital I doubt there is any value in its balance sheet. Floating a law firm would be like floating a football club (both rely entirely on the talents of their employees to earn all their capital) and both or terrible investment opportunities if looking for a reasonable return. The majority of football club shares would be owned by fans, or nowadays billionaires who want a trophy asset to play with. I doubt law firms will be considered a 'trophy asset' by anyone!!

28-Apr-2011

4:47 pm